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

Interpretations of the derivative , Interpretations of the Derivative : ...

Interpretations of the Derivative : Before moving on to the section where we study how to calculate derivatives by ignoring the limits we were evaluating in the earlier secti

Addition of like terms with same signs, Case 1: Suppose we are given...

Case 1: Suppose we are given expressions like 3abc and 7abc and asked to compute their sum. If this is the case we should not worry much. Because adding like exp

How many ways can dvds be arranged on a shelf, How many ways can 4 DVDs be ...

How many ways can 4 DVDs be arranged on a shelf? Solution: There are 4 ways to choose the first DVD, 3 ways to choose the second, 2 ways to choose the third and 1 way to choo

Develop a linear program, The production manager of Koulder Refrigerators m...

The production manager of Koulder Refrigerators must decide how many refrigerators to produce in each of the next four months to meet demand at the lowest overall cost. There is a

Numbers, even numbers

even numbers

Neuro marketing, Does neuro marketing give impetus to new consumer behavio...

Does neuro marketing give impetus to new consumer behaviour

Unit Rates, I need help on how to do real word problm with unit rates.

I need help on how to do real word problm with unit rates.

Prove that if x is a real number then [2x] = [x] + [x + ½ ], Prove that if...

Prove that if x is a real number then [2x] = [x] + [x + ½ ] Ans: Let us consider x be any real number. It comprises two parts: integer and fraction. With no loss of

Constructions, Draw a line segment AB of length 4.4cm. Taking A as centre, ...

Draw a line segment AB of length 4.4cm. Taking A as centre, draw a circle of radius. 2cm and taking B as centre, draw another circle of radius 2.2cm. Construct tangents to each cir

Write the next two terms, Write the next two terms √12, √27, √48, √75.........

Write the next two terms √12, √27, √48, √75................... Ans:    next two terms √108 , √147 AP is 2 √3 , 3 √3 , 4 √3 , 5 √3 , 6 √3 , 7 √3 ......

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