Ads
related to: portfolio cases for modelsetsy.com has been visited by 1M+ users in the past month
- Black-Owned Shops
Discover One-of-a-Kind Creations
From Black Sellers In Our Community
- Home Decor Favorites
Find New Opportunities To Express
Yourself, One Room At A Time
- Star Sellers
Highlighting Bestselling Items From
Some Of Our Exceptional Sellers
- Free Shipping Orders $35+
On US Orders From The Same Shop.
Participating Shops Only. See Terms
- Black-Owned Shops
ebay.com has been visited by 1M+ users in the past month
Search results
Results from the WOW.Com Content Network
Merton's portfolio problem is a problem in continuous-time finance and in particular intertemporal portfolio choice. An investor must choose how much to consume and must allocate their wealth between stocks and a risk-free asset so as to maximize expected utility .
More recently, modern portfolio theory has been used to model the self-concept in social psychology. When the self attributes comprising the self-concept constitute a well-diversified portfolio, then psychological outcomes at the level of the individual such as mood and self-esteem should be more stable than when the self-concept is undiversified.
Another approach to model risk is the worst-case, or minmax approach, advocated in decision theory by Gilboa and Schmeidler. [22] In this approach one considers a range of models and minimizes the loss encountered in the worst-case scenario. This approach to model risk has been developed by Cont (2006). [23]
In finance, the Markowitz model ─ put forward by Harry Markowitz in 1952 ─ is a portfolio optimization model; it assists in the selection of the most efficient portfolio by analyzing various possible portfolios of the given securities. Here, by choosing securities that do not 'move' exactly together, the HM model shows investors how to ...
Portfolio optimization is the process of selecting an optimal portfolio (asset distribution), out of a set of considered portfolios, according to some objective. The objective typically maximizes factors such as expected return , and minimizes costs like financial risk , resulting in a multi-objective optimization problem.
For example, if a portfolio of stocks has a one-day 5% VaR of $1 million, that means that there is a 0.05 probability that the portfolio will fall in value by more than $1 million over a one-day period if there is no trading. Informally, a loss of $1 million or more on this portfolio is expected on 1 day out of 20 days (because of 5% probability).
Ads
related to: portfolio cases for modelsetsy.com has been visited by 1M+ users in the past month
ebay.com has been visited by 1M+ users in the past month