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

Algebra, Manuel is a cross-country runner for his school’s team. He jogged ...

Manuel is a cross-country runner for his school’s team. He jogged along the perimeter of a rectangular field at his school. The track is a rectangle that has a length that is 3 tim

Solid geomerty, find the equation to the sphere through the circle xsqaure+...

find the equation to the sphere through the circle xsqaure+ysquare+zsquare+=9 , 2x+3y+4z=5

Children learn maths by experiencing things, Children Learn By Experiencing...

Children Learn By Experiencing Things : One view about learning says that children construct knowledge by acting upon things. They pick up things, throw them, break them, join the

Introduction , what states and marketing tasks?

what states and marketing tasks?

Limits at infinity, Limits At Infinity, Part I : In the earlier section w...

Limits At Infinity, Part I : In the earlier section we saw limits which were infinity and now it's time to take a look at limits at infinity.  Through limits at infinity we mean

Integration, ((1/x^1/2-(x-1)^1/2)+(1/(5-3(x-1)^2)^1/2)

((1/x^1/2-(x-1)^1/2)+(1/(5-3(x-1)^2)^1/2)

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

Quadric surfaces - three dimensional spaces, Quadric Surfaces Earlier w...

Quadric Surfaces Earlier we have looked at lines and planes in three dimensions (or R 3 ) and when these are used fairly heavily at times in a Calculus class there are several

Linda bought 35 yards of fencing how much did she spend, Linda bought 35 ya...

Linda bought 35 yards of fencing at $4.88 a yard. How much did she spend? To multiply decimals, multiply generally, count the number of decimal places in the problem, then us

#title.convert., 25 cl=____________L

25 cl=____________L

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