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Business, 26.08.2019 18:30 lakiprincess

Acollege endowment fund has $150 million. the fund manager intends to withdraw $2million from the fund for operations, and she has minimum year end acceptable level of 151 million. the fund has two choices for the portfolio. the endowment manager can choose portfolio a, which has an expected return of 10% and a std. deviation of 14%, or port. b which has an expected returnn of 12% and a std. deviation of 20%. given this scenario, which of the following statements regarding roy’s saftety first criterion is true? a) the threshold is equal to 0.3b) port. b should be chosen because it has a sfratio of 0.5c) port. a should be chosen b/c it has a sfratio of 0.57d) port. a and b are both acceptable b/c the sfratio’s fall in the acceptable range

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