User Account

All Pages

Management, Mathematics

Assignment Help:
An investment manager at TD Ameritrade is making a decision about a $10,000,000 investment. There are four portfolio options available and she is looking at annual return of these portfolios to choose one. Market has four possible situations: bad, average, good, and excellent. Each portfolio may have a different estimated rate of return under a known market situation. For “Bad”, “Average”, “Good”, and “Excellent” market, “Option 1” has return rates of 33%, 28%, 1%, and loss of 15% respectively. These numbers are 22%, 12%, 17%, and loss of 5% for “Option 2”, 8%, 9%, 14%, and 16% for “Option 3”, and finally for “Option 4” these rates are loss of 2%, 5%, 12%, and 35% under “Bad”, “Average”, “Good”, and “Excellent” market situations.
a. Compare the outcomes for all portfolios under any market situation. What is the best portfolio under Minimax Regret rule?
b. Does the outcome change if the investment decision was made based on the expected value of portfolios? Why? Probabilities for bad, average, good, and excellent market situations are 35%, 22%, 25%, and 18% respectively.

Related Discussions:- Management

Levels of significance - rejection and acceptance regions, Levels of signif...

Levels of significance A level of significance is a probability value which is utilized when conducting tests of hypothesis. A level of significance is mostly the probability

Find probabilities for the standard normal distribution, Q. Find Probabilit...

Q. Find Probabilities for the Standard Normal Distribution? Ans. Suppose the history teacher decides to distribute the final grades of his class with a normal distribution

Guess my number, My thousandths digit is twice the tenths digit. My tenths ...

My thousandths digit is twice the tenths digit. My tenths digit is one less than the hundredths digit. If my number is 5, what my number?

Metric measurement, what is a liter

what is a liter

Convert units, 32gal/min = qt/hr

32gal/min = qt/hr

Hi, can i get job of teaching maths here

can i get job of teaching maths here

Circle, a wheel revolves 360 deegre revolution in one minute .Find how many...

a wheel revolves 360 deegre revolution in one minute .Find how many radians will the wheel subtend in one second

How much does every person required to pay rob, Rob purchased picnic food f...

Rob purchased picnic food for $33.20 to share along with three of his friends. They plan to split the cost evenly among the four friends. How much does every person required to pay

Homomorphism, Let G be a group acting on a set X. The action is called fait...

Let G be a group acting on a set X. The action is called faithful if for any g ≠ 1 ∈ G there exists an x ∈ X such that gx ≠ x. That is, only the identity fi xes everything. Prov

Real number, if HCFof 657 and 963 is expressable in the form of 657x+963x-1...

if HCFof 657 and 963 is expressable in the form of 657x+963x-15findx

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd