Explore BrainMass

Explore BrainMass

    Mean Variance criteria in investments

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Consider the following 3 investments

    Security Expected Return Standard Deviation
    J .12 .4
    K .14 .4
    L .13 .5
    M .12 .3

    Using the mean-Variance criteria, identify whether one security dominates or whether there is no dominance for each possible pair of securities.

    © BrainMass Inc. brainmass.com December 24, 2021, 5:53 pm ad1c9bdddf
    https://brainmass.com/business/finance/mean-variance-criteria-in-investments-77639

    Solution Preview

    Hello

    Please see the details as below

    Security Expected Return Standard Deviation
    J .12 .4
    K .14 .4
    L .13 .5
    M .12 .3

    There are four options to consider J, K ,L, and M. Expected return and standard deviations are given for each option. Kindly note that variance is the square of standard deviation, so we can ...

    Solution Summary

    Using the mean-Variance criteria, solution identifies whether one security dominates or whether there is no dominance for each possible pair of securities.

    $2.49

    ADVERTISEMENT