Adequate Decision Rules for Portfolio Choice Problems
Author | : T. Goodall |
Publisher | : Springer |
Total Pages | : 128 |
Release | : 2015-12-17 |
ISBN-10 | : 9781403907318 |
ISBN-13 | : 1403907315 |
Rating | : 4/5 (315 Downloads) |
Download or read book Adequate Decision Rules for Portfolio Choice Problems written by T. Goodall and published by Springer. This book was released on 2015-12-17 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author presents the theory of portfolio choice from a new perspective, recommending decision rules that have advantages over those currently used in theory and practice. Portfolio choice theory relies on expected values. Goodall argues that this dependence has a historical basis and argues that current decision rules are inadequate for most portfolio choice situations. Drawing on econometric solutions proposed for the problem of forecasting outcomes of a chance experiment, the author defines adequacy criteria, and proposes adequate decision rules for a variety of situations. Goodall's theory combines the problems of prediction and choice, and formulates solutions based on cost functions that fit the underlying decision situation.