Why will portfolio A allow the beckers to achieve their financial goals better than portfolio B?
The answer says because portfoli A has a higher probability of achieving a postive terminal value.
Is this becase portfolio B has 2 expected values of ZERO in the 10th and 5th percentile?
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The question has been posted b4.
Though the investors want to leave a gift of 5mil when they both die (Port B qualified), they are not willing to risk running out of money in their old age to achieve the second goal. Port B will risk their life at 10% out of money.