Question: Please SHOW ALL WORK Meme Meme Question 2 20 pts Assume that there are two assets in an economy. Asset A has log-normally distributed returns

Please SHOW ALL WORK

Please SHOW ALL WORK Meme Meme Question 2 20 pts Assume that

Meme Meme Question 2 20 pts Assume that there are two assets in an economy. Asset A has log-normally distributed returns with mean 10% and standard deviation of 20%. Asset B has log-normally distributed returns with mean 5% and standard deviation of 10%. Assume that the correlation between two assets is 0%. Portfolio P consists of 30% Asset A and 70% Asset B. Suppose that the investment horizon is one-year. What is the probability that portfolio P will lose value during this horizon? (You can report your answer with Excel function, NORMDIST(x,ms, true). State the value of x, m and s, explicitly.)

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