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

Trigonometry, A 25 foot ladder just reaches the top of a house and forms an...

A 25 foot ladder just reaches the top of a house and forms an angle of 41.5 degrees with the wall of the house. How tall is the house?

#title.equaction answer, 4+15-(4-1/2)

4+15-(4-1/2)

Computed the total cost y of a ride which was x miles, A ride in a taxicab ...

A ride in a taxicab costs $1.25 for the first mile and $1.15 for each additional mile. Which of the following could be used to computed the total cost y of a ride which was x miles

Determine the nand gate, Find out the two inputs when the NAND gate output ...

Find out the two inputs when the NAND gate output will be low. Ans. The output of NAND gate will be low if the two inputs are 11. The Truth Table of NAND gate is shown

Factoring Quadratic trinomials, 2x-11x-21

2x-11x-21

Probability - applications of integrals, Probability - Applications of inte...

Probability - Applications of integrals In this final application of integrals that we'll be looking at we are going to look at probability.  Previous to actually getting into

Mensuration of plane figures, a sail has a spread of canvas as measured 12'...

a sail has a spread of canvas as measured 12'',12'', 15'' and 9'' and it has 90 degrees. Find the area of one side of the sail

expected value, Describe the distribution of sample means shapefor samples...

Describe the distribution of sample means shapefor samples of n=36 selected from a population with a mean of μ=100 and a standard deviation of o=12.  , expected value, and standard

Chain based index numbers, What is Chain Based Index Numbers?

What is Chain Based Index Numbers?

This year he is 651/4 inches tall how many inches did grow, Last year Jonat...

Last year Jonathan was 603/4 inches tall. This year he is 651/4 inches tall. How many inches did he grow? Subtract to find outthe difference in heights. You will need to borro

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