Question
Cali owns a company. The investment portfolio consists of two independent investments: Investment 1 and Investment 2. She believes that the 1-year return for Investment
Cali owns a company.
The investment portfolio consists of two independent investments: Investment 1 and Investment 2. She believes that the 1-year return for Investment 1 will be
-$4,000 with probability 0.2, $0 with probability 0.3, or $7,000 with probability 0.5.
She also believes that the 1-year return for Investment 2 will be uniformly distributedbetween-$6,000 and $14,000.
simulation model needed to determine probability of a total negative return (Investment 1 Return + Investment 2 Return) after 1 year.
Average Total Return after One Year ? whole dollar amount
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