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

Math, #question.help.

#question.help.

Algebra, 4.2^2x+1-9.2^x+1=0

4.2^2x+1-9.2^x+1=0

Rejection and acceptance regions, Rejection and Acceptance regions All ...

Rejection and Acceptance regions All possible values which a test statistic may either suppose consistency along with the null hypothesis as acceptance region or lead to the re

Venn Diagram, In a group of 85 people, 33 own a microwave, 28 own a DVD pla...

In a group of 85 people, 33 own a microwave, 28 own a DVD player and 38 own a computer. In addition, 6 people own both a microwave and a DVD player, 9 own both a DVD player and a c

Determine equation of tangent line, Determine equation of the tangent line ...

Determine equation of the tangent line to f (x) = 4x - 8 √x  at x = 16 . Solution : We already know that the equation of a tangent line is specified by,

Inverse laplace transforms, Determining the Laplace transform of a function...

Determining the Laplace transform of a function is not terribly hard if we've found a table of transforms opposite us to use as we saw in the previous section. What we would want t

Trigonometry, why it is hard?

why it is hard?

Line and Angle Relationships, Solve for x. 21x+6

Solve for x. 21x+6

Geometry help, One of two complementary angles is 80& of the other. What is...

One of two complementary angles is 80& of the other. What is the degree measure of the smaller angle?

Explain basic concepts of parallel lines, Explain Basic Concepts of Paralle...

Explain Basic Concepts of Parallel Lines ? Parallel lines are defined in section 1.2 and we use "//" to denote it. From the definition, we can get the following two consequenc

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