NO.PZ2023010410000006
问题如下：
Several years later, the Beckers again meet with Frost. Their investable portfolio is now valued at USD 7.0 million. The Beckers state that their primary goal is to maintain their current living standard as long as they live. The Beckers also want to leave a charitable gift of at least USD 5.0 million from their investable assets after they have both died. However, they are not willing to risk running out of money in their old age to achieve this secondary goal. The Beckers agree with Frost to assume a 25-year time horizon.
Frost produces Monte Carlo simulations for the Beckers using two portfolios with different asset allocations. The simulations use a long series of historical index data for each asset class in the two portfolios. The resulting distributions of terminal values are shown in Exhibit 1. All terminal values are after expected taxes and spending needs have been met.
Determine, based
on the Monte Carlo simulations, which portfolio (A or B) will better allow the
Beckers to achieve their goals. Justify your response with one reason related
to risk.
选项：
解释：
Portfolio A will
better allow the Beckers to achieve their primary financial goal of maintaining
their living standard until both have died. This is because the portfolio has a
higher probability of achieving a positive terminal value.
在75 percentile 以上， high probabilities的阶段，都是portfolio B terminal value 高啊!
