Purchase Solution

Risk Tolerance of the Investor

Not what you're looking for?

Ask Custom Question

Project C has an expected value of $500 and a standard deviation of 50. Project D has an expected value of
$300 and a standard deviation of 10. Comment on the desirability of these projects.

Purchase this Solution
Solution Summary

Please assess the risk tolerance of the investor.

Solution Preview

Hello

The answer to this question depends on the risk tolerance of the investor. For a risk ...

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
Recent Feedback
  • "ty i have more need help with"
  • "ty i have jmore i need help with"
  • "great help"
  • "excellent help"
  • "Very helpful and easy to understand."
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Rsk tolerance levels of investors

    Risk tolerance level of investor Aggressive investor is having higher tolerance level of risk; on the other hand conservative investor will be having lower risk tolerance.

  • importance of Asset Allocation in classes

    For example, an aggressive investor with higher tolerance for risk will opt for higher percentage of equity investments in his portfolio, whereas a risk averse investor or investor with lower risk tolerance level will opt for higher percentage of fixed

  • The Importance of Beta

    If the investor has a low risk tolerance, that is, the investor is risk-averse, he or she should invest in stocks with a lower beta.

  • Risk and Return in Financial Markets

    This solution of 222 words discusses the expectations of an investor and analyzes the relationship between risk and return in financial markets with examples.

  • Is a diversification strategy a way to improve expected return of a portfolio?

    The investor has felt that trying for higher returns involves too much risk. How could the investment portfolio and risk tolerance be adjusted to provide the required retirement income?

  • Portfolio optimization

    The overall mix of such asset classes in the portfolio depends on the level of risk an investor is willing to take and thus, portfolio managers balance the mix of assets as per the risk preference and other objectives of the investor.

  • Linear Programming

    Finally, B&R developed a questionnaire to measure each client's risk tolerance. Based on the responses, each client is classified as a conservative, moderate, or aggressive investor.

  • Evaluate, compare, and contrast the asset allocation strategies

    The main concern of an investor is to see to it that the portfolio is aligned with his objectives and risk tolerance. Among the asset allocation strategies include: 1.

  • Re-balancing of portfolio

    Hence for an aggressive investor it will be better to maximize return and for a conservative investor it will be better to minimize risk. Cliff feels that he has a moderate risk-tolerance level.

View More Related Solutions