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I just updated my android studio to version 4.0.
Before the update (version 3.6), if I wanted to open the AVD manager all I needed to do wasTools > AVD Manager
Now I cannot open the avd manager with Tools > AVD Manager because the option is not there anymore
According to the documentation all needed to be done is Tools > AVD Manager
How it looks in Android studio:
Where can I find the "AVD manager" option on android studio 4.0?
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To launch the AVD Manager: In Android Studio, select Tools > Android > AVD Manager, or click the AVD Manager icon in the toolbar.
android/. ANDROID_AVD_HOME: Sets the path to the directory that contains all AVD-specific files, which mostly consist of very large disk images. The default location is $ANDROID_EMULATOR_HOME/avd/. You might want to specify a new location if the default location is low on disk space.
The avdmanager is a command line tool that allows you to create and manage Android Virtual Devices (AVDs) from the command line. An AVD lets you define the characteristics of an Android handset, Wear OS watch, or Android TV device that you want to simulate in the Android Emulator.
Updated my answer. You can find here avd manager. 
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On opening a project, the Tools menu initially does not contain the AVD Manager or SDK Manager entries. Once the project has completed loading, these entries appear.
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