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

Deriviates, y=X^2/3(2X-X^2)

y=X^2/3(2X-X^2)

Inverse functions, We have seen that if y is a function of x, then fo...

We have seen that if y is a function of x, then for each given value of x, we can determine uniquely the value of y as per the functional relationship. For some f

Basic computation formulas of differentiation, Basic "computation" formulas...

Basic "computation" formulas : Next, let's take a quick look at some basic "computation" formulas that will let us to actually compute some derivatives. Formulas 1)   If f

Find out the determinant, Find out the determinant: Find out the deter...

Find out the determinant: Find out the determinant of the following 3 x 3 matrix, expanding about row 1. Solution:

General solution to a differential equation, The general solution to a diff...

The general solution to a differential equation is the most common form which the solution can take and does not take any initial conditions in account. Illustration 5: y(t) =

Applications of series - estimating the value of a series, Estimating the V...

Estimating the Value of a Series One more application of series is not actually an application of infinite series.  It's much more an application of partial sums.  Actually, we

Example of line - common polar coordinate graphs, Example of line - Common ...

Example of line - Common Polar Coordinate Graphs Example:  Graph θ = 3Π, r cos θ = 4 and r sin θ = -3 on similar axis system. Solution There actually isn't too much to

Number and operations, 1a.if the williams spend $385 a month on food what i...

1a.if the williams spend $385 a month on food what is their monthly income

Linear probability model, Pepsi:               A dummy variable where 1 den...

Pepsi:               A dummy variable where 1 denotes choice of Pepsi by the i-th customer and 0 otherwise Price_P:           The price of a 2-liter bottle of Pepsi at the time

Mathematics for finance, 1. XYZ company’s cost function for the next four m...

1. XYZ company’s cost function for the next four months is C = 600,000 + 8Q a) Find the BEP dollar volume of sales if the selling price is br. 10 / unit b) What woul

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