assignmentcafe.com – What is the probability that one year from now my total stock value is higher than $104? /latest answer 2022

assignmentcafe.com –

We are considering investing money on four stocks which look equally promising. Let Xi be the price (in dollars) of stock i one year from now. X1 is N(20, 62 ), X2 is N(20, 62 ), X3 is N(20, 62 ), and X4 is N(20, 62 ). So these four stocks have the same statistical distribution. Assume that X1, X2, X3, and X4 are independent random variables. (i) If I buy one share of each of the four stocks,

 find the mean and variance of the value of my stocks one year from now. 

(ii) What is the probability that one year from now my total stock value is higher than $104? 

Like Problems 1 and 2, please answer the above 2 sub-questions using CFRN and rand(): (a) (10 points) Use CFRN to generate 5 sets of random numbers for X1, X2, X3, and X4, and conduct 5 simulation runs. Specifically, use the first 4 four CFRN to generate X1, X2, X3, and X4 in simulation 1, next four 4 CFRN for the second simulation, etc. (b) (5 points) Use the function rand() in Excel to generate X1, X2, X3, and X4. And increase the number of simulation runs from 5 to 200.