1. The fileC11_01.xlsxcontains monthly returns 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 strategies over the six-year period. Plot the value of each strategy over time for a single iteration of the simulation. What is the total value of each strategy after six years? Do either of the strategies reach the target?

1. Use @RISK to simulate 1000 iterations of the two strategies over the six-year period. Create a histogram of the final fund values. Based on your simulation results, which of the two strategies would you recommend? Why?

1. 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 strategies would you recommend now? Why?