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Finding a maximum skewness portfolio

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Author Info
Gustavo Athayde and Renato Flores
Abstract

Ways of finding a maximum skewness portfolio, with given return, variance and kurtosis, are presented. The methods take advantage of the special shape of the efficient portfolios manifold. Simpler solutions are obtained if the higher moments tensor has some particular structures. The problem of finding the optimal portoflio in a dynamic setting is also discussed. Areas where this portfolio is meaningful are outlined and an empirical application is fully developed.

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 273.

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Date of creation: 01 Apr 2001
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Handle: RePEc:sce:scecf1:273

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Related research
Keywords: skewness; kurtosis; optimal portfolio; efficient portfolios surface;

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing

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