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

Proof integral function, Proof of: if f(x) > g(x) for a x b th...

Proof of: if f(x) > g(x) for a x b then a ∫ b  f(x) dx > g(x). Because we get f(x) ≥ g(x) then we knows that f(x) - g(x) ≥ 0 on a ≤ x ≤ b and therefore by Prop

Fractions, The bowling alley suggests selecting a ball that is 1/7 of the b...

The bowling alley suggests selecting a ball that is 1/7 of the bowlers weight. If the bowler weighs 84 pounds, how much should the bowling ball weigh?

Function and relation, how to know if it is function and if is relation

how to know if it is function and if is relation

Probability, two coins are flipped once.what is the probability of getting ...

two coins are flipped once.what is the probability of getting two tails?

Detemine the amplitude of trigonometric function, 1. Consider the trigonome...

1. Consider the trigonometric function f(t) = (a) What is the amplitude of f(t)? (b) What is the period of f(t)? (c) What are the maximum and minimum values attained by

Find out a vector that is orthogonal to the plane, A plane is illustrated b...

A plane is illustrated by any three points that are in the plane.  If a plane consists of the points P = (1, 0,0) , Q = (1,1,1) and R = (2, -1, 3) find out a vector that is orthogo

Fractions, which fractions is equivalent to 5/ 6 a.20/24 b.9/10 c.8/18 d....

which fractions is equivalent to 5/ 6 a.20/24 b.9/10 c.8/18 d.10/15

Example of set representation, Can anybody suggest me any example of Set Re...

Can anybody suggest me any example of Set Representation?

Cylinder - three dimensional spaces, Cylinder The below equation is th...

Cylinder The below equation is the common equation of a cylinder. x 2 /a 2 + y 2 /b 2 = 1 This is known as a cylinder whose cross section is an ellipse.  If a = b we

Fractions, Mr. And Mrs. samuel visited Florida and purchased 120 oranges. ...

Mr. And Mrs. samuel visited Florida and purchased 120 oranges. They gave 1/4 of them to relatives, ate 1/12 of them in the hotel, and gave 1/3 of them to friends. The shipped the

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