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A financial investor builds a portfolio that is worth an expected 3 5 mil. The investor knows that his analysts can build a model to

A financial investor builds a portfolio that is worth an expected 35mil. The investor knows that his analysts can build a model to boost the potential return from the portfolio investment. The additional return has a Normal Distribution with mean 3mil and standard deviation 0.5mil. The investor wishes to sell his financial services at a price that guarantees his expected profit will be 5% of the total return from the portfolio.
A) What should the price of his financial service be? Do we need to take additional return's standard deviation into account?

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