simulation of investment option

simulation of investment option - |1|1216090| 1 Name...

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1  Name   Cell   Sim#   Min   Mean   Max   Std Dev  5% 95% Final cash I14 1 $10,945.70 $20,605.40 $36,994.11 $4,203.93 $14,521.16 $28,512.88 Final cash I14 2 $16,435.56 $18,731.55 $22,999.37 $1,053.50 $17,205.99 $20,654.50 As summay shown, even though the first option(80% in S&P, 20% in T-bill) has higher average, I will recommedate second one because it is less dispersion and has mean over 17500 2 since the mean of seond option (20% in S&P, 80% in T-bill) is 18731.55 which is less than 19500, I will recommedate frist option even though it is more risky 3 we should consider about inflation
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d0859fd94eeafc2ec57f0876fc36df24bdfcca19.xlsx Model The College Fund Simulation Inputs Monthly investment $200 Planning horizon 72 months Alternatives Index S&P T-bills 1 0.8 0.2 2 0.2 0.8 Weights used Index S&P T-bills Output #NAME? #NAME? #NAME? Final cash #NAME? Amounts to Invest #NAME? #NAME? Historical Return Table: Simulation model Ending Cash Month Year/Month S&P 500 Total Ret T-bill Total Ret Probability Future month Scenario 1+S&P Ret 1+T-bill Ret $ in S&P $ in T-bill Total 1 7001 -7.43% 0.60% 0.00383142 1 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 2 7002 5.86% 0.62% 0.00383142 2 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 3 7003 0.30% 0.57% 0.00383142 3 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 4 7004 -8.89% 0.50% 0.00383142 4 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 5 7005 -5.47% 0.53% 0.00383142 5 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 6 7006 -4.82% 0.58% 0.00383142 6 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 7 7007 7.52% 0.52% 0.00383142 7 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 8 7008 5.09% 0.53% 0.00383142 8 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 9 7009 3.47% 0.54% 0.00383142 9 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 10 7010 -0.97% 0.46% 0.00383142 10 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 11 7011 5.36% 0.46% 0.00383142 11 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 12 7012 5.84% 0.42% 0.00383142 12 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 13 7101 4.19% 0.38% 0.00383142 13 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
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  • Spring '14
  • JaniceK.Winch
  • 0.63%, 0.57%, 0.73%, 0.58%, 0.64%, 7601

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