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 boost the potential return from the portfolio investment. The additional return has a Normal Distribution with mean

$$

$3$

mil and standard deviation

$$

$0$

$.$

$5$

mil. 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

$?$

B

$)$

$$Simulate

$($

with a min of

$2$

$0$

$0$

$$repetitions

$)$

$$the average and the standard deviation of the profit the financial advisor realizes when setting the price for his services between

$1$

$\%$

$$and

$1$

$0$

$\%$

$$of

the total expected return from the portfolio. Then discuss your findings. Can you show how it looks on excel. i dont undertsand what the percentages ranging from $1$ to $10$ are used for in this question.