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

Liner regression, Liner Regression The calculations for our sample siz...

Liner Regression The calculations for our sample size n = 10 are described below. The linear regression model is y = a + bx Table: Distance x miles

Prove that 7cot - 3cosec = 3, If 7 cosec?-3cot? = 7, prove that 7cot? - 3co...

If 7 cosec?-3cot? = 7, prove that 7cot? - 3cosec? = 3. Ans:    7 Cosec?-2Cot?=7 P.T 7Cot? - 3 Cosec?=3 7 Cosec?-3Cot?=7 ⇒7Cosec?-7=3Cot? ⇒7(Cosec?-1)=3Cot? ⇒7(C

Precalulus, Solve the equation for exact solutions over the interval [o,2Pi...

Solve the equation for exact solutions over the interval [o,2Pi] 2 sec x + 1 = sec x + 3 Some one please help!!!

Prove that sinx+cosx=? , Multiply and divide by root2, then root2/root2...

Multiply and divide by root2, then root2/root2(sinx+cosx) = root2(sinx/root2 + cosx/root2) = root2(sinx cos45+cosx sin45) = root2(sin(x+45))

Calculate what number of workers should be hired, You are given the followi...

You are given the following information about the amount your company can produce per day given the number of workers it hires. Numbers of Workers Quanti

Equation, how to slove problems on equations

how to slove problems on equations

Earth geometry, calculate the shortest distance between A and B 40degrees w...

calculate the shortest distance between A and B 40degrees west and 50 degrees east respectively laying along 57 degrees north

Show that the angles subtended at the centre , A circle touches the sides o...

A circle touches the sides of a quadrilateral ABCD at P, Q, R and S respectively. Show that the angles subtended at the centre by a pair of opposite sides are supplementary.

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd