This case study involves the asset allocation strategy for the Cook County Pension Fund. The goal is to simulate the solvency of the pension fund through 2040, considering various financial activities and market conditions. We need to: 1. Build a model to simulate the market value of the pension fund from 2017 to 2040, incorporating: - Deductions for retiree benefits. - Contributions by Cook County and its employees, including supplementary contributions. - Investment returns, assuming they follow a normal distribution. 2. Assess the historical risks and rewards of different asset classes Hackett can invest in, using standard deviation for risk and average return for reward. 3. Evaluate the impact of investing 100% of the fund in each asset class on the probability of fund survival over 100 simulations. 4. Discuss the reasonableness of using historical performance as an indication of future performance and identify any asset classes where this assumption may be problematic. 5. Provide recommendations for Hackett on portfolio management and other options Cook County should consider