(Investment) Mr. Kowalski has invested $50,000 in three

Chapter , Problem 17

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(Investment) Mr. Kowalski has invested $50,000 in three uncorrelated financial assets: 25% in the first financial asset, 40% in the second one, and 35% in the third one. The annual rates of return for these assets, respectively, are normal random variables with means 12%, 15%, and 18%, and standard deviations 8%, 12%, and 15%. What is the probability that, after a year, Mr. Kowalskis net profit from this investment is at least $10,000? Ignore transaction costs and assume that there is no annual dividend.

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