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Question 2 To model the future performance of an investment fund in the next 10 years, you assume that in each of the first 5

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Question 2 To model the future performance of an investment fund in the next 10 years, you assume that in each of the first 5 years, the effective rate of interest will be 4% or 8% per annum, with respective probabilities 0.25 and 0.75. From the 6th year, the annual effective rate of interest is distributed with probability density 12.5 (50x 1) for 0.02

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