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

Ratio, how can i solve it

how can i solve it

Help, how long would it take if a submarine if it goes 3 feet per minute to...

how long would it take if a submarine if it goes 3 feet per minute to get to 20000 answer

Surface area- applications of integrals, Surface Area- Applications of inte...

Surface Area- Applications of integrals In this part we are going to look again at solids of revolution. We very firstly looked at them back in Calculus I while we found the

Convertling customary units., how do you convert ft to yds, yds to in,and ...

how do you convert ft to yds, yds to in,and etr

What is the volume of this prism in terms of x, The area of the base of a p...

The area of the base of a prism can be expressed as x2 + 4x + 1 and the height of the prism can be expressed as x - 3. What is the volume of this prism in terms of x? Because t

DETERMINANT, IF 7 AND 2 ARE TWO ROOTS OF THE EQUATION |X 3 7 2 X 2 7 6 X...

IF 7 AND 2 ARE TWO ROOTS OF THE EQUATION |X 3 7 2 X 2 7 6 X |=0 THEN FIND THE THIRD ROOT IS

Proof for absolute convergence - sequences and series, Proof for Absolute C...

Proof for Absolute Convergence Very first notice that |a n | is either a n or it is - a n depending upon its sign.  The meaning of this is that we can then say, 0 a n +

Parallel vectors - applications of scalar multiplication, Parallel Vectors ...

Parallel Vectors - Applications of Scalar Multiplication This is an idea that we will see fairly a bit over the next couple of sections.  Two vectors are parallel if they have

Matrices by simultaneous questions, 3x+2y=6 x-y=7

3x+2y=6 x-y=7

Luis runs rate of 11.7 feet per second how far does he run, Luis runs at a ...

Luis runs at a rate of 11.7 feet per second. How far does he run in 5 seconds? You must multiply 11.7 by 5; 11.7 × 5 = 58.5. To multiply decimals, multiply generally, then coun

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