A person wants to invest in one of three alternative investment plans: stocks, bonds or a savings accountIt is assumed that the person wishes to invest all of the funds in one plan. The conditional Pay-off of theinvestments are based on three potential economic conditions: accelerated, normal cr slow growth. ThePay-off matrix is given below:Alternative InvestmentEconomic ConditionsAccelerated GrowthNormal GrowthSlow Growth10,6008,0005,00016,5006,0005,0004,6001,0005,000StockBondsSavingDetermine the best investment plan using each of the following criteria:(i) Laplace(ii) Maximin(iii) Miximax(iv) Hurwicz with coefficient of optimism a. =0.6.

There are different methods that used to make decisions. Some of them are decision using risk,…

Answered: A person wants to invest in one of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question 1 Consider an investor's choice of a farm unit in the Corn Belt, one in the Califormia Central Valley, or the one in the Great Plains region. An investor added these three assets in one portfolio. The portfolio composed of equal proportions of the three investments. Use the information in the table below to answer the questions that follows (show all your work for partial credits). Investment Alternatives Corn Belt (1) Central Valley (2) Great Plains (3) Exp. Return n-0.14 0.12 n-0.07 Std. Dev. O-0.08 o-0.05 oy-0.01 Weight in Portfolio w-1/3 wz-1/3 wy-1/3 Correlation Among Investment 1 and 2 (p2)-0.30 1 and 3 (pu) --0.40 2 and 3 (s) --0.10 Portfolio Data for Financial Servicing Analysis Under Risk a. Calculate the expected retum of the portfolio. b. Calculate the variance and the standard deviation of the portfolio. c. Calculate the variance and standard deviation of the portfolio assuming that the correlation among the investments is all equal to 0. d. Calculate the variance…
Don't just show the right options. Show all transactions clearly. Non-transactional questions will be considered incorrect.
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The Acme Manufacturing Company is concerned about its warehouse needs and how they can best be met. The company produces a line of spare parts for appliance. Due to the combination of production policies and demand patterns, warehousing space requirement vary considerably throughout the year. Space requirements are known with a great deal of certainty because the product line satisfies a replacement market. Growth, or decline, in production and sales is not anticipated in the near future. Monthly sales rates for a typical year are as follows: Month Sales, $ Jan. 5,000,000 Feb. 4,000,000 Mar. 3,000,000 Apr. 2,000,000 May 1,000,000 June 250,000 July 1,250,000 Aug. 2,250,000 Sept. 3,000,000 Oct. 3,500,000 Nov. 4,000,000 Dec. 4,500,000 Total 33,750,000 Warehouse inventory turns at the rate of two times per month. The price of merchandise is $5 per lb. On average, merchandise occupies 0.1 cubic feet of warehouse space per lb and can be stacked 10 ft. high. Given…
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