Month index	Month	S&P 500	T-Bill
1	Jan-1990	0.85%	0.64%
2	Feb-1990	2.43%	0.65%
3	Mar-1990	-2.69%	0.67%
4	Apr-1990	9.20%	0.67%
5	May-1990	-0.89%	0.67%
6	Jun-1990	-0.52%	0.65%
7	Jul-1990	-9.43%	0.64%
8	Aug-1990	-5.12%	0.63%
9	Sep-1990	-0.67%	0.62%
10	Oct-1990	5.99%	0.61%
11	Nov-1990	2.48%	0.59%
12	Dec-1990	4.15%	0.57%
13	Jan-1991	6.73%	0.54%
14	Feb-1991	2.22%	0.51%
15	Mar-1991	0.03%	0.52%
16	Apr-1991	3.86%	0.51%
17	May-1991	-4.79%	0.50%
18	Jun-1991	4.49%	0.52%
19	Jul-1991	1.96%	0.51%
20	Aug-1991	-1.91%	0.47%
21	Sep-1991	1.18%	0.45%
22	Oct-1991	-4.39%	0.43%
23	Nov-1991	11.16%	0.40%
24	Dec-1991	-1.99%	0.36%
25	Jan-1992	0.96%	0.34%
26	Feb-1992	-2.18%	0.35%
27	Mar-1992	2.79%	0.38%
28	Apr-1992	0.10%	0.35%
29	May-1992	-1.74%	0.34%
30	Jun-1992	3.94%	0.34%
31	Jul-1992	-2.40%	0.30%
32	Aug-1992	0.91%	0.28%
33	Sep-1992	0.21%	0.26%
34	Oct-1992	3.03%	0.27%
35	Nov-1992	1.01%	0.30%
36	Dec-1992	0.70%	0.30%
37	Jan-1993	1.05%	0.29%
38	Feb-1993	1.87%	0.28%
39	Mar-1993	-2.54%	0.27%
40	Apr-1993	2.27%	0.27%
41	May-1993	0.08%	0.28%
42	Jun-1993	-0.53%	0.29%
43	Jul-1993	3.44%	0.28%
44	Aug-1993	-1.00%	0.28%
45	Sep-1993	1.94%	0.28%
46	Oct-1993	-1.29%	0.28%
47	Nov-1993	1.01%	0.29%
48	Dec-1993	3.25%	0.30%
49	Jan-1994	-3.00%	0.29%
50	Feb-1994	-4.57%	0.32%
51	Mar-1994	1.15%	0.35%
52	Apr-1994	1.24%	0.39%
53	May-1994	-2.68%	0.43%
54	Jun-1994	3.15%	0.43%
55	Jul-1994	3.76%	0.45%
56	Aug-1994	-2.69%	0.45%
57	Sep-1994	2.08%	0.47%
58	Oct-1994	-3.95%	0.50%
59	Nov-1994	1.23%	0.53%
60	Dec-1994	2.43%	0.58%
61	Jan-1995	3.61%	0.57%
62	Feb-1995	2.73%	0.54%
63	Mar-1995	2.80%	0.52%
64	Apr-1995	3.63%	0.51%
65	May-1995	2.13%	0.49%
66	Jun-1995	3.18%	0.46%
67	Jul-1995	-0.03%	0.45%
68	Aug-1995	4.01%	0.47%
69	Sep-1995	-0.50%	0.46%
70	Oct-1995	4.10%	0.45%
71	Nov-1995	1.74%	0.44%
72	Dec-1995	3.26%	0.43%
73	Jan-1996	0.69%	0.41%
74	Feb-1996	0.79%	0.40%
75	Mar-1996	1.34%	0.43%
76	Apr-1996	2.29%	0.45%
77	May-1996	0.23%	0.46%
78	Jun-1996	-4.57%	0.47%
79	Jul-1996	1.88%	0.47%
80	Aug-1996	5.42%	0.46%
81	Sep-1996	2.61%	0.47%
82	Oct-1996	7.34%	0.45%
83	Nov-1996	-2.15%	0.44%
84	Dec-1996	6.13%	0.44%
85	Jan-1997	0.59%	0.46%
86	Feb-1997	-4.26%	0.45%
87	Mar-1997	5.84%	0.47%
88	Apr-1997	5.86%	0.49%
89	May-1997	4.35%	0.48%
90	Jun-1997	7.81%	0.46%
91	Jul-1997	-5.75%	0.45%
92	Aug-1997	5.32%	0.45%
93	Sep-1997	-3.45%	0.45%
94	Oct-1997	4.46%	0.44%
95	Nov-1997	1.57%	0.44%
96	Dec-1997	1.02%	0.45%
97	Jan-1998	7.04%	0.43%
98	Feb-1998	4.99%	0.43%
99	Mar-1998	0.91%	0.44%
100	Apr-1998	-1.88%	0.44%
101	May-1998	3.94%	0.44%
102	Jun-1998	-1.16%	0.44%
103	Jul-1998	-14.58%	0.44%
104	Aug-1998	6.24%	0.42%
105	Sep-1998	8.03%	0.38%
106	Oct-1998	5.91%	0.34%
107	Nov-1998	5.64%	0.37%
108	Dec-1998	4.10%	0.37%
109	Jan-1999	-3.23%	0.37%
110	Feb-1999	3.88%	0.38%
111	Mar-1999	3.79%	0.39%
112	Apr-1999	-2.50%	0.38%
113	May-1999	5.44%	0.40%
114	Jun-1999	-3.20%	0.42%
115	Jul-1999	-0.63%	0.41%
116	Aug-1999	-2.86%	0.42%
117	Sep-1999	6.25%	0.43%
118	Oct-1999	1.91%	0.44%
119	Nov-1999	5.78%	0.45%
120	Dec-1999	-5.09%	0.47%
121	Jan-2000	-2.01%	0.50%
122	Feb-2000	9.67%	0.50%
123	Mar-2000	-3.08%	0.50%
124	Apr-2000	-2.19%	0.50%
125	May-2000	2.39%	0.51%
126	Jun-2000	-1.63%	0.50%
127	Jul-2000	6.07%	0.49%
128	Aug-2000	-5.35%	0.50%
129	Sep-2000	-0.49%	0.50%
130	Oct-2000	-8.01%	0.49%
131	Nov-2000	0.41%	0.49%
132	Dec-2000	3.46%	0.46%
133	Jan-2001	-9.23%	0.39%
134	Feb-2001	-6.42%	0.38%
135	Mar-2001	7.68%	0.35%
136	Apr-2001	0.51%	0.33%
137	May-2001	-2.50%	0.31%
138	Jun-2001	-1.07%	0.29%
139	Jul-2001	-6.41%	0.30%
140	Aug-2001	-8.17%	0.28%
141	Sep-2001	1.81%	0.23%
142	Oct-2001	7.52%	0.19%
143	Nov-2001	0.76%	0.18%
144	Dec-2001	-1.56%	0.18%
145	Jan-2002	-2.08%	0.18%
146	Feb-2002	3.67%	0.18%
147	Mar-2002	-6.14%	0.21%
148	Apr-2002	-0.91%	0.20%
149	May-2002	-7.25%	0.19%
150	Jun-2002	-7.90%	0.18%
151	Jul-2002	0.49%	0.16%
152	Aug-2002	-11.00%	0.15%
153	Sep-2002	8.64%	0.14%
154	Oct-2002	5.71%	0.14%
155	Nov-2002	-6.03%	0.12%
156	Dec-2002	-2.74%	0.12%
157	Jan-2003	-1.70%	0.11%
158	Feb-2003	0.84%	0.11%
159	Mar-2003	8.10%	0.10%
160	Apr-2003	5.09%	0.11%
161	May-2003	1.13%	0.10%
162	Jun-2003	1.62%	0.08%
163	Jul-2003	1.79%	0.09%
164	Aug-2003	-1.19%	0.11%
165	Sep-2003	5.50%	0.10%
166	Oct-2003	0.71%	0.10%
167	Nov-2003	5.08%	0.11%
168	Dec-2003	1.73%	0.11%
169	Jan-2004	1.22%	0.10%
170	Feb-2004	-1.64%	0.10%
171	Mar-2004	-1.68%	0.10%
172	Apr-2004	1.21%	0.12%
173	May-2004	1.80%	0.15%
174	Jun-2004	-3.43%	0.17%
175	Jul-2004	0.23%	0.17%
176	Aug-2004	0.94%	0.17%
177	Sep-2004	1.40%	0.17%
178	Oct-2004	3.86%	0.18%
179	Nov-2004	3.25%	0.21%
180	Dec-2004	-2.53%	0.22%
181	Jan-2005	1.89%	0.24%
182	Feb-2005	-1.91%	0.25%
183	Mar-2005	-2.01%	0.27%
184	Apr-2005	3.00%	0.27%
185	May-2005	-0.01%	0.27%
186	Jun-2005	3.60%	0.28%
187	Jul-2005	-1.12%	0.30%
188	Aug-2005	0.69%	0.32%
189	Sep-2005	-1.77%	0.32%
190	Oct-2005	3.52%	0.34%
191	Nov-2005	-0.10%	0.35%
192	Dec-2005	2.55%	0.36%
193	Jan-2006	0.05%	0.36%
194	Feb-2006	1.11%	0.38%
195	Mar-2006	1.22%	0.39%
196	Apr-2006	-3.09%	0.40%
197	May-2006	0.01%	0.41%
198	Jun-2006	0.51%	0.42%
199	Jul-2006	2.13%	0.42%
200	Aug-2006	2.46%	0.41%
201	Sep-2006	3.15%	0.41%
202	Oct-2006	1.65%	0.41%
203	Nov-2006	1.26%	0.41%
204	Dec-2006	1.41%	0.40%
205	Jan-2007	-2.18%	0.41%
206	Feb-2007	1.00%	0.41%
207	Mar-2007	4.33%	0.40%
208	Apr-2007	3.25%	0.40%
209	May-2007	-1.78%	0.40%
210	Jun-2007	-3.20%	0.40%
211	Jul-2007	1.29%	0.40%
212	Aug-2007	3.58%	0.37%
213	Sep-2007	1.48%	0.34%
214	Oct-2007	-4.40%	0.34%
215	Nov-2007	-0.86%	0.29%
216	Dec-2007	-6.12%	0.27%
217	Jan-2008	-3.48%	0.22%
218	Feb-2008	-0.60%	0.17%
219	Mar-2008	4.75%	0.13%
220	Apr-2008	1.07%	0.14%
221	May-2008	-8.60%	0.17%
222	Jun-2008	-0.99%	0.20%
223	Jul-2008	1.22%	0.19%
224	Aug-2008	-9.08%	0.18%
225	Sep-2008	-16.94%	0.16%
226	Oct-2008	-7.48%	0.12%
227	Nov-2008	0.78%	0.09%
228	Dec-2008	-8.57%	0.04%
229	Jan-2009	-10.99%	0.04%
230	Feb-2009	8.54%	0.05%
231	Mar-2009	9.39%	0.05%
232	Apr-2009	5.31%	0.05%
233	May-2009	0.02%	0.04%
234	Jun-2009	7.41%	0.04%
235	Jul-2009	3.36%	0.04%
236	Aug-2009	3.57%	0.04%
237	Sep-2009	-1.98%	0.03%
238	Oct-2009	5.74%	0.03%
239	Nov-2009	1.78%	0.03%
240	Dec-2009	-3.70%	0.03%
241	Jan-2010	2.85%	0.03%
242	Feb-2010	5.88%	0.03%
243	Mar-2010	1.48%	0.03%
244	Apr-2010	-8.20%	0.04%
245	May-2010	-5.39%	0.03%
246	Jun-2010	6.88%	0.03%
247	Jul-2010	-4.74%	0.02%
248	Aug-2010	8.76%	0.02%
249	Sep-2010	3.69%	0.02%
250	Oct-2010	-0.23%	0.02%
251	Nov-2010	6.53%	0.02%
252	Dec-2010	2.26%	0.02%
253	Jan-2011	3.20%	0.02%
254	Feb-2011	-0.10%	0.02%
255	Mar-2011	2.85%	0.02%
256	Apr-2011	-1.35%	0.02%
257	May-2011	-1.83%	0.02%
258	Jun-2011	-2.15%	0.01%
259	Jul-2011	-5.68%	0.02%
260	Aug-2011	-7.18%	0.01%
261	Sep-2011	10.77%	0.01%
262	Oct-2011	-0.51%	0.01%
263	Nov-2011	0.85%	0.01%
264	Dec-2011	4.36%	0.01%
265	Jan-2012	4.06%	0.01%
266	Feb-2012	3.13%	0.01%
267	Mar-2012	-0.75%	0.02%
268	Apr-2012	-6.27%	0.01%
269	May-2012	3.96%	0.02%
270	Jun-2012	1.26%	0.02%
271	Jul-2012	1.98%	0.02%
272	Aug-2012	2.42%	0.01%
273	Sep-2012	-1.98%	0.01%
274	Oct-2012	0.28%	0.01%
275	Nov-2012	0.71%	0.01%
276	Dec-2012	5.04%	0.01%
277	Jan-2013	1.11%	0.01%
278	Feb-2013	3.60%	0.01%
279	Mar-2013	1.81%	0.01%
280	Apr-2013	2.08%	0.01%
281	May-2013	-1.50%	0.01%
282	Jun-2013	4.95%	0.01%
283	Jul-2013	-3.13%	0.01%
284	Aug-2013	2.97%	0.01%
285	Sep-2013	4.46%	0.01%
286	Oct-2013	2.80%	0.01%
287	Nov-2013	2.36%	0.01%
288	Dec-2013	-3.56%	0.01%

CAS E 1.I COLLEGE FUND INVESTMENT Questions I. The file CIl_ol.xlsx contains monthly returns our next-door neighbor, Scott Jansen, has a 12-year-old daughter, and he intends to pay the tuition for her first year of college six years from now. The tuition for the first year will be $20,000. Scott has gone through his budget and finds that he can invest $300 per month for the next six years. Scott has opened accounts at two mutual funds. The first fund follows an investment strategy designed to match the return of the S&P 500. The second fund invests in short-term (one-year) Treasury bills. Both funds have very low fees. of the S&P 500 and Treasury bills from January 1990 through December 2013. Suppose that in each of the next 72 months (six years), it is equally likely that any of the historical returns will occur. Develop a spreadsheet model to simulate the two suggested investment strate- gies o each strategy over time for a single iteration of the simulation. strategy after six years? Do either of the strate- gies reach the target! ver the six-year period. Plot the value of What is the total value of each Scott has decided to follow a strategy in which he contributes a fixed fraction of the $300 to each fund. An adviser from the first fund suggested that in each month he should invest 80% of the $300 in the S&P 500 fund and the other 20% in the T-bill fund The adviser explained that the S&P 500 has averaged much larger returns than the T-bill fund. Even though stock returns are risky investments in the short run, the risk should be fairly minimal over the longer six-year period. An adviser from the second fund 2. Use @RISK to simulate 1000 iterations of the two strategies over the six-year period. Create a histogram of the final fun your simulation results, which of the two strate- gies would you recommen d values. Based on d? Why? 3. Suppose that Scott needs to have $30,000 to pay for the first year's tuition. Based on the same simulation results, which of the two strate- gies would you recommend now? Why? rec ommended just the opposite: invest 20% in the S&P 500 fund and 80% in T-bills, because treasury bills are backed by the United States government. If you follow this allocation, he said, your average re- turn will be lower, but at least you will have enough to reach your $20,000 target in six years. 4. What other real-world factors might be impor tant to consider in designing the simulation and making a recommendation