Peter has $30,000 to invest in a mutual fund whose annuai returns are normally distributed with a mean of 5.93% and standard deviation of 3.55%. a. Use Excel's Analysis ToolPak, with a seed of 1, to simulare 5,000 trials to estimate the mean balance after one year (Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.) Avorage balance ater one yoar b. What is the probability of a balance of $32.700 or more? (Round intermediate calculations to at least 4 decimal places and show your final answer as a percentage point with 2 decimal places.) Probubity of having a balance of 532.700 or more

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a mean of 5.93% and standard
devlation of 3.55%.
a. Use Excel's Analysis ToolPak, with a seed of 1, to simulate 5,000 trials to estimate the mean balance after one year. (Round
intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.)
Average balance after one year
b. What is the probability of a balance of $32,700 or more? (Round intermediate calculations to at least 4 decimal places and show
your final answer as a percentage point with 2 decimal places.)
Probabity of having a balance of $32,700 or more
Transcribed Image Text:Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a mean of 5.93% and standard devlation of 3.55%. a. Use Excel's Analysis ToolPak, with a seed of 1, to simulate 5,000 trials to estimate the mean balance after one year. (Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.) Average balance after one year b. What is the probability of a balance of $32,700 or more? (Round intermediate calculations to at least 4 decimal places and show your final answer as a percentage point with 2 decimal places.) Probabity of having a balance of $32,700 or more
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