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

Help me, How should Shoppers’ Stop develop its demand forecasts?

How should Shoppers’ Stop develop its demand forecasts?

Write an equation in radius and solve it for radius, X and Y are centers of...

X and Y are centers of circles of radius 9cm and 2cm and XY = 17cm. Z is the centre of a circle of radius 4 cm, which touches the above circles externally.  Given that XZY=90 o , w

Vector analysis ...gradient, A body is constrained to move in a path y = 1+...

A body is constrained to move in a path y = 1+ x^2 and its motion is resisted by friction. The co-efficient of friction is 0.3. The body is acted on by a force F directed towards t

Divison polinomios, 6x^7-2x^3+4x-16 / 3x^2-7x+9

6x^7-2x^3+4x-16 / 3x^2-7x+9

What is a negative number, Q. What is a Negative Number? Ans. Neg...

Q. What is a Negative Number? Ans. Negative numbers  are very important in mathematics. We say that positive and negative numbers are  opposites  of one another. Here

Naming fractions greater than 1, the 10 miles assigned to the chess club st...

the 10 miles assigned to the chess club start at the 10 mile point and go to the 20 mile point when the chess club members have cleaned 5/8 of their 10 mile section between which m

Exponential, 2/4t=1/2

2/4t=1/2

Inverse functions, Inverse Functions : In the last instance from the pr...

Inverse Functions : In the last instance from the previous section we looked at the two functions   f ( x ) = 3x - 2 and g ( x ) = x /3+ 2/3 and saw that ( f o g ) ( x )

Equal groupings -categories of multiplication, Equal groupings - when we...

Equal groupings - when we want to find how many objects there are in several equal-sized sets. (e.g., if there are 3 baskets, each with 4 bananas, 4 oranges and 4 apples, respec

Which expression has an answer of 18, Which expression has an answer of 18?...

Which expression has an answer of 18? Use the order of operations and try every option. The first option results in 14 since 2 . 5 = 10, then 10 + 4 = 14. This does not work. T

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