# Bill is considering investing \$120,000 among two investments. He will invest \$50,000 in the first investment which is known…

Bill is considering investing \$120,000 among two investments. He will invest \$50,000 in the first investment which is known to follow a uniform distribution with a rate of return that varies from ï€­10% to 25%. He will invest \$70,000 in the second investment which follows a normal distribution with an average rate of return of 10% and a standard deviation of 3%. a) Use the following random numbers to simulate return rates for investment 1 for 3 years. Year RN Rate of Return 1 364 2 895 3 139 b) Use the following random numbers to simulate return rates for investment 2 for 3 years. Year RN Rate of Rturn 1 1.68 2 ï€­0.83 3 2.05 c) Complete the following simulation table to simulate Billâ€™s investments for a three-year period. Assume that the balances are cumulative. Investment 1 Investment 2 Combined Year RN Rate Return Balance RN Rate Return Balance Balance 1 364 1.68 2 895 -0.83 3 139 2.05