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

Value delivery, What do you mean by value delivery

What do you mean by value delivery

Trigonometry, cos30 is equal to what?

cos30 is equal to what?

Marketing, What''s the price for a Marketing plan assignment ( postgraduate...

What''s the price for a Marketing plan assignment ( postgraduate)5000 words?

Reduction formulae, Reduction formulae Script for Introduction: ...

Reduction formulae Script for Introduction: First let us know what is meant by reduction formula. In simple words,                 A formula which expressess(or re

Graph f(x) = ex and g(x) = e- x - common graph, Graph f ( x ) = e x and g ...

Graph f ( x ) = e x and g ( x ) = e - x . Solution There actually isn't a lot to this problem other than ensuring that both of these exponentials are graphed somewhere.

Multiplying mixed number, how to do it

how to do it

What is the approximate cost of 1 binder and 1 pen, At the school bookstore...

At the school bookstore and two binders and three pens cost $12.50. Three binders and five pens cost $19.50. What is the approximate cost of 1 binder and 1 pen? Let x = the cos

Obtain the sum of the squares of values, This question is in the form of an...

This question is in the form of an exercise and questions designed to give you more insight into signal processing. On the Moodle site for the module there is an EXCEL file called

Maclaurin series - sequences and series, Maclaurin Series Before w...

Maclaurin Series Before working any illustrations of Taylor Series the first requirement is to address the assumption that a Taylor Series will in fact exist for a specifi

An initial species population , An initial species population is y(0) = 300...

An initial species population is y(0) = 3000. At t=0 the population starts to grow exponentially with a doubling time of 2 years. Mark the only correct statement: a)    The per

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