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

Sampling distribution p-hat, Caterer verifies that 87% of people who sample...

Caterer verifies that 87% of people who sampled the food thought it was delicious. A random sample of 144 out of population of 5000 taken. The 144 are asked to sample the food. If

Matrix, parts of matrix and functions

parts of matrix and functions

Prove that three times the sum of the squares, Prove that three times the s...

Prove that three times the sum of the squares of the sides of a triangle is equal to four times the sum of the squares of the medians of the triangle. Ans:    To prove 3(AB 2

Excel, do you guys have excel math

do you guys have excel math

Differential euation, obtain the solution of y^4 +y=0

obtain the solution of y^4 +y=0

Concept of marketing, what are the concept of marketing?

what are the concept of marketing?

Determine the marginal probability distributions, (1)   The following table...

(1)   The following table gives the joint probability distribution p (X, Y) of random variables X and Y. Determine the following: (a) Do the entries of the table satisfy

Find the value of p and q for which the system of equations, Find the value...

Find the value of p and q for which the system of equations represent coincident lines 2x +3y = 7, (p+q+1)x +(p+2q+2)y = 4(p+q)+1 Ans: a 1  = 2, b 1 = 3, c 1 = 7 a 2  =

What was brian''s total commission on these three sales, Brian is a real es...

Brian is a real estate agent. He forms a 2.5% commission on each sale. During the month of June he sold three houses. The houses sold for $153,000, $299,000, and $121,000. What was

Coefficient of determination, It refers to the ratio of the explained varia...

It refers to the ratio of the explained variation to the total variation and is utilized to measure the strength of the linear relationship. The stronger the linear relationship th

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