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Consider these long-term investment data: The price of a 10-yr $100 par zero coupon inflation-indexed bond is $84.49. A Real estate property is expected to
Consider these long-term investment data:
The price of a 10-yr $100 par zero coupon inflation-indexed bond is $84.49.
A Real estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%. (MUST SHOW WORK AND FORMULA IN EXCEL)
Q: What is the probability of loss or shortfall after 10 years?
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