Total return generated on both bull and bear predictions
Not what you're looking for?
Please help.
Chuck, an imperfect forecaster correctly predicts 57% of all bull markets and 68% of all bear markets. Roy is a perfect forecaster. If Chuck is able to charge a fee of $125000, what is the fee that Roy should charge? (assume both of them manage similar size funds)
Purchase this Solution
Solution Summary
Total return generated on both bull and bear predictions by Chuck is illustrated in this tutorial.
Solution Preview
Before answering this we need to make few assumptions:
1. Market have equally likely tendency to move up and down.
2. The percentage change on upside and downside are same and we assume that this is X.
For correct bull prediction ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.