Quant Q from Exam 3 Am sure this Q must have come up on this forum. Please help. An investor is celebrating his 50th b/day today and wants to start saving for his anticipated retirement at age 65. He wants to be able to withdraw $15,000 from his savings account on each b/day for 20yrs following his retirement, with the first withdrawal being made on his 66th b/day. After extensive research, the investor determines that he can deposit his money into an account that offers 5% interest per yr (compounded quarterly). He wants to make equal annual payments on each b/day into the account-the first payment on his 51st b/day, and the last on his 65th b/day. In addition, the investor’s employer will contribute $100 to the account at the end of every month as part of the company’s profit sharing plan ( a total of 180 contributions). What amount must the investor deposit personally each year on his b/day to enable him make the desired withdrawals at retirement? a. $7 305 b. $9 411 c. $12 667 d. $15 549 Q 2 An analyst develops the following information for two stocks. 50% of the funds are invested ineach stock. Scenario 1 Scenario 2 Scenario 3 Probability 0.5 0.3 0.2 Rate of Return Stock A 25% 10% -25% Stock B 1% -5% 35% The expected return and the variance of this two stock protfolio are closest to: Expected Return Variance a.8.25% 23.31% b. 8.25% 48.09% c.10.5% 23.31% d.10.5% 48.09% Thanks for your help. Verily verily after this, will be able to solve the Exam 3 PM Q. Many thanks