You are hired as consultants to Doha Investments to advise them on the various investment opportunities and their returns (in $10,000), given the interest rate changes that the United Arad Emirates wo

Stuck with a difficult assignment? No time to get your paper done? Feeling confused? If you’re looking for reliable and timely help for assignments, you’ve come to the right place. We promise 100% original, plagiarism-free papers custom-written for you. Yes, we write every assignment from scratch and it’s solely custom-made for you.


Order a Similar Paper Order a Different Paper

You are hired as consultants to Doha Investments to advise them on the various investment opportunities and their returns (in $10,000), given the interest rate changes that the United Arad Emirates would make, if Doha Investments invest in some opportunities in Africa. The table presents a summary of the profits to be made from each investment opportunity.

Investment Opportunity Interest Rates (States of Nature)

5% 6% 7% 8% 9%

Money Market 200 310 400 430 500

Stock Growth Fund -300 -200 250 400 600

Bond Fund 600 500 300 300 200

Government Bond 400 360 320 300 200

Risk Fund -900 -450 120 830 1470

Savings Bond 300 300 320 340 350

Determine the best investment option, using the following decision criteria.

a) Maximax

b) Maximin

c) Minmax regret

d) Hurwicz (α = 0.35)

e) Equal likelihood(Laplace)

f) If the probability of making 5% return is 0.2, 6% is 0.2, 7% is 0.1, 8% is 0.3 and 9% is 0.2 Using expected monetary values, what option should Doha Investment choose and what is that optimal expected value?

g) What is the most Doha Investments would be willing to pay for additional information? Use Minimum Expected Regret (Minimum EOL)

h) Present your findings in a report to the Chairman of the Finance Committee of the Board of Directors. Be sure to include your recommended investment opportunity along with sound supporting evidence.

Writerbay.net

We’ve proficient writers who can handle both short and long papers, be they academic or non-academic papers, on topics ranging from soup to nuts (both literally and as the saying goes, if you know what we mean). We know how much you care about your grades and academic success. That's why we ensure the highest quality for your assignment. We're ready to help you even in the most critical situation. We're the perfect solution for all your writing needs.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper