21、An investor currently has a portfolio valued at $700,000. The investor's objective is long-term growth, but the investor will need $30,000 by the end of the year to pay her son's college tuition and another $10,000 by year-end for her annual vacation. The investor is considering four alternative portfolios: Portfolio
Expected Return Standard Deviation of Returns 1 8% 10% 2 10% 13% 3 14% 22% 4 18% 35% Using Roy's safety-first criterion, which of the alternative portfolios minimizes the probability that the investor's portfolio will have a value lower than $700,000 at year-end? A. Portfolio 1. B. Portfolio 2. C. Portfolio 3. D. Portfolio 4. | 
发表于 2008-11-5 16:25
| 
