MONTE CARLO ANALYSIS IN RETIREMENT PLANNING_5823

For investment advisors, a major consideration in planning for a client in retirement is the determination of a withdrawal amount that will provide the client with the funds necessary to maintain his or her desired standard of living throughout the client's remaining lifetime. If a client withdraws too much or if investment returns fall below expectations, there is a danger of either running out of funds or reducing the desired standard of living. A sustainable retirement withdrawal is the inflation-adjusted monetary amount a client can withdraw periodically from his or her retirement funds for an assumed planning horizon. This amount cannot be determined with complete certainty because of the random nature of investment returns. Usually, the sustainable retirement withdrawal is determined by limiting the probability of running out of funds to 2 some specified level, such as 5%. The sustainable retirement withdrawal amount is typically expressed as a percentage of the initial value of…

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Use the following to answer questions a. – f.       a. What is the alpha for Fund B? b. Based on alpha, which fund displays superior performance? c. What is the Sharpe ratio for Fund B? d. Based on the Sharpe ratio, which fund displays superior performance? e. Suppose you are an investment counselor with a new client, Jonsey, and that Funds A and B are the only options available in Jonsey's company sponsored retirement account. Jonsey has no other investments. Which fund would you recommend, and why? f. What additional evidence would make you more confident in your recommendation, that is, more confident that the fund you recommend has the ability to perform in the future? (Hint: The answer has nothing to do with the Treynor Index.)

Exploring Annuities with Microsoft Excel I. Objectives: To organize data and perform calculations using Microsoft Excel To find future values for an annuity To determine payment amounts for an annuity given a set goal To analyze the effect of time To research reasonable annuity rates and investment amounts for use in the above calculations II. Procedure: Sheet 1 - Future Value 1. Open a new Microsoft Excel (or Google Sheets) blank spreadsheet. 2. At the bottom of the page, it will show "Sheet 1". You can rename it "Future Value". a. Right click the "Sheet 1" tab and you will see an option to rename it. 3. Type "Payment Amount (P)" in cell A1. 4. Type "Rate (i)" in cell B1. 5. Type "Number of Payments per year (n)" in cell C1. 6. Type "Years (t)" in cell D1. Now the research.. You need to investigate reasonable annuity rates for our current market. You can choose a rate of your own using the information you find. Also, I want you to find out what investors suggest your payment amount…

1. Savings can replace a client need for insurance products.   A. True   B. False   2. SafeSave of Dhaka is an example of a high frequency saving model solution.   A. True   B. False   3. Ideally your marginal utility today will be equal to your marginal utility in the future adjusted for time value of money, or   MUt = (1+r) / (1+δ) Et [MUt+1]   A. True   B. False   4. Moral hazard is not present for insurance products.   A. True   B. False   5. Mandatory savings which cannot be accessed by microloan clients until repayment can be seen as collateral or a fee for services.   A. True   B. False

What is true about the way you should approach financial goals across different stages of your life? A.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time. b. Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals. c. You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life. d. Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it

Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the future value of an annuity due? PMT x {[(1 + r)ª − 1]/r} x (1 + r) O FV/(1 + r)¹ PMT x {[(1 + r)" - 1]/r} O PMT x ({1 - [1/(1 + r)"]}/r) x (1 + r)

Which of the two main participants involved in real estate finance are seeking to maximize risk adjusted return on surplus income for themselves or others, along with low risk and high return projects? borrowers mortgagers lenders (mortgagers Please do fast ASAP fast

All parts are under one questions and per your policy therefore all parts can be answered.  1. Concepts used in cash flow estimation and risk analysis You can come across different situations in your life where the concepts from capital budgeting will help you in evaluating the situation and making calculated decisions. Consider the following situation: The following table contains five definitions or concepts. Identify the term that best corresponds to the concept or definition given.   A. Concept or Definition Term A computer-generated probability simulation of the most likely outcome, given a set of probable future events      The most likely scenario in a capital budgeting analysis      A measure of the project’s effect on the firm’s earnings variability      A method to determine market risk by using the betas of single-product companies in a given industry      The risk that is measured by the project’s beta coefficient        B. Marston…

Can i please get help with this please? I filled in the blanks with the options to show what we are working with..Also please help me understand why you picked what you did so i may study correctly , thank you.   There is only 1 table second one is just showing more options, options not shown are:long term notes payable, ace capital, ace withdrawals,construction revenue, construction revenue, depreciation expense-equipment,wages expense, interest expense, insurance expense,rent expense,supplies expense, property tax expense, repair expense and utilities expense. ACE CONSTRUCTION COMPANY Unadjusted Trial Balance June 30 Number Account Title Debit Credit 101 Cash $ 16,500   126 Supplies 10,000   128 Prepaid insurance 7,000   167 Equipment 144,770   168 Accumulated depreciation—Equipment   $  24,500 201 Accounts payable   5,400 203 Interest payable   0 208 Rent payable   0 210 Wages payable   0 213 Property taxes payable   0 251 Long-term notes payable…

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Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $800 per year for 10 years at 14%: $   Present value of $400 per year for 5 years at 7%: $   Present value of $800 per year for 5…

Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $400 per year for 10 years at 10%. $   $200 per year for 5 years at 5%. $   $400 per year for 5 years at 0%. $   Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $400 per…