Customer Service Chat
Get quote & make Payment
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.
Posted Date: 4/21/2012 2:30:22 AM | Location : United States
Ask an Expert
Management, Assignment Help, Ask Question on Management, Get Answer, Expert's Help, Management Discussions
Write discussion on Management
Your posts are moderated
Write your message here..
Karls pearsons co-efficient of correlation, Aim: To test the significan...
Aim: To test the significant relationship between the accounting ratios of operating management and standard ideal ratios. Null Hypothesis(H 0 ) : There is no significa
Simple random sampling, Simple Random Sampling It refers to the samplin...
Simple Random Sampling It refers to the sampling technique whether each and every item of the population is described an equal chance of being included in the sample. Because s
In sequence to remain the pole perpendicular to the ground, A cable is atta...
A cable is attached to a pole 24 ft above ground and fastened to a stake 10 ft from the base of the pole. In sequence to remain the pole perpendicular to the ground, how long is th
What is the greatest value of the number, Five more than the quotient of a ...
Five more than the quotient of a number and 2 is at least that number. What is the greatest value of the number? Let x = the number. Notice that quotient is a key word for div
Value of pi, what is the value of pi
what is the value of pi
Word problems, please can you help me with word problems
please can you help me with word problems
UNITARY METHOD, A group of 120 men had food for 200 days.After 5 days , 30 ...
A group of 120 men had food for 200 days.After 5 days , 30 men die of disease.How long will the remaining food last
3-d geometry, Q) In 3D-geometry give + and - signs for x,y,z, in all eight ...
Q) In 3D-geometry give + and - signs for x,y,z, in all eight octants Ans) There is no specific hard rule for numbering the octants. So, it makes no real sense to ask which octan
How to subtract fractions involving negative numbers, Q. How to Subtract fr...
Q. How to Subtract fractions involving negative numbers? Ans. This is the same as adding them, but just remember the rule that two negatives on the same fraction cancel ou
Combinations, evaluate the expression a) 10C4 b) 10P4.....I do not under...
evaluate the expression a) 10C4 b) 10P4.....I do not understand this
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.