Question: ms rose wants to invest rs 10 mln in a...
Ms Rose wants to invest Rs 10 Mln in a fund indexed with S & P 500. The continuous return and the continuous standard deviation of the S&P index has been 12% and 17% respectively for the last 60 years.
a. Calculate the probability of doubling the investment in 9 years by Ms Rose
b.Estimate the probability of incurring losses from the portfolio within 9 years.
You may apply following model adhering to standard deviation.Please state all the assumptions you may have with the answer.