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

Hydrostatic pressure and force - applications of integrals, Hydrostatic Pre...

Hydrostatic Pressure and Force - Applications of integrals In this part we are going to submerge a vertical plate in water and we wish to know the force that is exerted on t

Linear, what is linear?

what is linear?

Calculus, find or evaluate the integral integrate((e^2x + e^x + 1)/(e^x))dx...

find or evaluate the integral integrate((e^2x + e^x + 1)/(e^x))dx

How to solve inequalities, How to Solve Inequalities ? Now that you hav...

How to Solve Inequalities ? Now that you have learned so much about solving equations, you're ready to solve inequalities. You might think that since an equation looks like

Basic Mathematics, Distinguish between Mealy and Moore Machine? Construct a...

Distinguish between Mealy and Moore Machine? Construct a Mealy machine that can output EVEN or ODD According to the total no. of 1''''s encountered is even or odd.on..

Transition matrix, example #Minimum 100 words accepted#

example #Minimum 100 words accepted#

Two bulbs are selected without replacement, A bag of 28 tulip bulbs contain...

A bag of 28 tulip bulbs contains 12 red tulip bulbs,7 purple tulip bulbs  and 9 yellow tulip bulbs,. Two bulbs are selected without replacement. Determine, a)    The probability t

Union and intersection - set theory, Union and Intersection - Set theory ...

Union and Intersection - Set theory B ∩ C indicates the intersection of B and C. it is the set having all those elements that belong to both B and C If B = {5, 8, 11, 20, 2

Solve the differential equation, Solve the subsequent differential equation...

Solve the subsequent differential equation and find out the interval of validity for the solution. Let's start things off along with a fairly simple illustration so we can notic

Matrix inverse, Here we need to see the inverse of a matrix. Provided a squ...

Here we need to see the inverse of a matrix. Provided a square matrix, A, of size n x n if we can get the other matrix of similar size, B that, AB = BA = I n after that we call

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