Compute the annual real return on the $\frac{50}{50}$ portfolio for each year in the sample. The

resulting set of $92$ portfolio returns represents the empirical distribution. These are the

returns investors historically realized when investing in a $50/50$ mix of stocks and T$-$bills

over this time period.

We will use the historical data to assess what may happen in the future via a Monte Carlo

simulation. To generate a possible path of future returns, draw $40$ times with replacement

from the empirical distribution. ${?}^2$ Assuming the $92$ historical returns are located in the

cell range $H12$:$H103,$ a random draw can be generated with

$,$ RANDBETWEEN $(1,92)$

The set of $40$ draws you generated can be viewed as one scenario of what may happen in

the next $40$ years.

Using the simulated return path, compute the investor's wealth at age $65.$