This text introduces the next two questions.You create portfolio by investing $50 in Google and $50 in Apple stocks.Google stock follows the following Brownian Motion

dS

S

=0.05dt+0.2

1

dt

dSS=0.05dt+0.21dt

and Apple follows

dS

S

=0.1dt+0.1

2

dt

dSS=0.1dt+0.12dt

where

1

and

2

1and2are independent Normal (0,1) variables

You create a spreadsheet in Crystal Ball to simulate the value of your portfolio at the end of 6 months.The spreadsheet is here:

CB Sheets.pdfdownload

It contains two pages. The first shows the spreadsheet and formulas used. The second page shows values of the portfolio in 100 simulation runs.

You now think that there may be an error in the Crystal Ball spreadsheet attached above.

Group of answer choices

The cell B13 should be changed to CB.Normal((B2-E2^2/2)*B5,E2*SQRT(B5)) and B14 should be changed similarly

The cell B15 should be changed to B8*EXP(B13*B5)+B9*EXP(B14*B5)

There are no mistakes

The cell B15 should be changed to B8*(1+*B13)+B9*(1+B14)