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

staticis, a statisics professor plans classes so carefully that the length...

a statisics professor plans classes so carefully that the lengths of her classes are uniformly distributed between 46.0 and 56.0 minutes. find the probability that a given class pe

Determine whether the following numbers are odd or even, Determine whether ...

Determine whether the following numbers are odd or even: Examples: Determine whether the following numbers are odd or even:  364, 1068, & 257. Solution: 1.

Technique of teching, What is a review technique? What are its advantages a...

What is a review technique? What are its advantages and disadvantages?

Integrals involving quadratics - integration techniques, Integrals Involvin...

Integrals Involving Quadratics To this point we have seen quite some integrals which involve quadratics.  Example of Integrals Involving Quadratics is as follow: ∫ (x / x 2

Determine the position and nature of stationary points, Question. Deter...

Question. Determine the position and nature of stationary points of the function? f(x,y)= y/x -x 2 +y 2

Variation of parameters, In this case we will require deriving a new formul...

In this case we will require deriving a new formula for variation of parameters for systems.  The derivation now will be much simpler than the when we first noticed variation of pa

What is plotting points, What is Plotting Points ? How would you go abo...

What is Plotting Points ? How would you go about drawing the graph of y = x2 ? One way to do it is by plotting points. (Your graphing calculator uses this method.) This is

Radius of rhim, how long is the radius of car tyre?

how long is the radius of car tyre?

Irrational numbers, square root 2 on the number line

square root 2 on the number line

Markov chain, The Video Club Martin rents movies at "regular price" andat ...

The Video Club Martin rents movies at "regular price" andat "half price". Usually if the films are regularly priced one day, they will be at regular price the next day with probab

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