Creating AVD (Emulator) in Android Studio

You can create AVD in Android Studio by following below procedure:

First in Android Studio select Android Device Monitor short cut icon as shown below.

In next window select Android Virtual device manage short cur icon as shown below.

in next window select create option as follows.

in next window give emulator information as show below and finally hit ok button to create AVD.

AVD creaated created successfully after hitting ok button as follows.

Next you can launch the AVD by select the avd in the list and click start button in right side as shown below

Finally your new AVD with Android 5.0 lollipop version looks like as follows.