Optimizing The Portfolio Of Assets, According To The Markowitz Model
AbstractOne can argue – with a degree of certainty – that finance experts had long realised that the decision to invest needed to take into account both the profitability and the risk associated with the assets, but that used to be done mostly at an empirical level. The major contribution of professor H. Markowitz was that he was the first to put forward a concrete model for optimizing the selection of assets for investment portfolios under uncertain circumstances. More specifically, Markowitz showed how efficient portfolios (those that maximize expected profitability at a given risk level) can be put together, even when they consist only of riscky assets. The simplicity and the elegance of his result, as well as the high degree of practical applicability made it a very popular model, a true landmark in modern finances. In fact, H. Markowitz was awarded the Nobel Prize for economy in 1990, along with M. Miller and W. Sharpe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Athenaeum University of Bucharest in its journal Internal Auditing and Risk Management.
Volume (Year): 30 (2011)
Issue (Month): 2(22) (June)
Contact details of provider:
Web page: http://www.univath.ro/facultati/facultatea_de_stiinte_economice
More information through EDIRC
Efficient portfolio; profitability; risk; volatility; optimum; variance;
Find related papers by JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emilia Vasile).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.