Question: Marcus is 2 5 years old. He has a new job and intends to save $ 1 0 , 0 0 0 today and in
Marcus is years old. He has a new job and intends to save $ today and in each of the next years deposits altogether He has decided on an investment policy in which he invests of his assets in a riskfree bond with continuously compounded annual interest and the remainder in the market portfolio that has lognormal returns and
Marcus decides that he needs at least $ million by the time he hits
a Run simulations in order to determine the approximate probability of achieving this goal.
b Compute the average and standard deviation of the terminal wealth.
c Create a Data Table to determine the relation between the proportion invested in the risky asset and the probability of achieving the minimum at age Set the proportions in the risky to
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