At the end of the current year, an investor wants to make a donation of $20,000 to charity but does not want the year end market value of her portfolio to fall below $600,000 If the shortfall level is equal to the risk free rate of return and returns from all portfolios considered are normally dist...

C is correct The portfolio with the highest safetyfirst ratio minimiz ...

At the end of the current year, an investor wants to make a donation of $20,000 to

Question:

At the end of the current year, an investor wants to make a donation of $20,000 to charity but does not want the year-end market value of her to fall below $600,000. If the shortfall level is equal to the risk-free rate of return and returns from all portfolios considered are normally distributed, will the that minimizes the probability of failing to achieve the investor's objective most likely have the:
Highest safety-first ratio? Highest Sharpe ratio?
A. No Yes
B. Yes No
C. Yes Yes
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...