Portfolio Selection Approach for Efficiently Diversified Investments Martin A. Montesdeoca

Finance often uses statistics based on historical information as standings. This is often considered a leap of faith, not always correct. It is assumed investors only take into account two parameters of return distribution when making investment decisions. In other words, it is assumed that a security can be completely represented in terms of its expected return and risk, and that investors behave as if a security was a commodity with these two attributes. A portfolio structure modeling relies on available information analysis, and also investors or professionals’ knowledge and experience, shaping market expectations for investment decisions. This approach shows how many tools, combined with traditional statistics applied for portfolio selection can model different portfolios based on risk tolerance. Это и многое другое вы найдете в книге Portfolio Selection Approach for Efficiently Diversified Investments (Martin A. Montesdeoca)