Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Theories Expert

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.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M91756

Have any Question? 


Related Questions in Management Theories

The company that you will do research on is ferrore it is a

The company that you will do research on is Ferrore. It is a chocolate company. The product of this company that you will do research on is Nutella. Answer questions briefly. in total it will be 6 page. put your answer f ...

Think about a decision you recently made in the workplace

Think about a decision you recently made in the workplace. Describe the situation and the decision made and consider the following: Do you feel you used a rational decision-making model? If you did not follow the rationa ...

Questions1 what would be the results of an effective

Questions: 1. What would be the results of an effective security investment? How would you measure that? 2. What role should the public play in risk management? 3. What role does a risk communication strategy play in ris ...

For this assignment write a minimum of 4 pages in length

For this assignment, write a minimum of 4 pages in length describing your intervention plan to lead the people in conflict toward transformative change. Be sure to use the unit lesson as a guide. Incorporate at least fiv ...

The family and medical leave act fmla was enacted in 1993

The Family and Medical Leave Act (FMLA) was enacted in 1993 and entitles eligible employees of employers covered under it to take unpaid, job-protected leave for specific family and medical reasons. During this leave, gr ...

Case study assignment -problem statement you need to

Case Study Assignment - Problem Statement: You need to consider how you will identify the range of issues and problems in the following problem statement. Boutique Hotel Company (BHCo) Please Note: This problem statement ...

Which two career paths are the most commonly encountered as

Which two career paths are the most commonly encountered as entrees into the InfoSec discipline? Are there other paths? If so, describe them. 1. Why is it important to have a body of standard job descriptions for hiring ...

1 public relations pr are the practice of good-quality

1. Public relations (PR) are the practice of good-quality communication between a company and the public. Conduct research to locate an effective example of public relations and an ineffective example of PR. Provide your ...

The goal of this homework assignment is to set up and solve

The goal of this homework assignment is to set up and solve a Transportation Model problem in MS Excel using the Solver Add-in. MS Excel provides users with the Solver Add-in, giving them super powers to solve linear, in ...

1 search the internet for information about a technology

1. Search the Internet for information about a technology called personal or home office firewalls. Examine the various alternatives, select three of the options, and compare their functionalities, cost, features, and ty ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro