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The Shapley decomposition for portfolio risk

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Author Info
Stéphane Mussard () (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)
Virginie Terraza () (CREA, University of Luxembourg, Faculty of Law Economics and Finance)

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Abstract

The aim of this paper is to provide an application of the Shapley Value to decompose financial portfolio risk. Decomposing the sample covariance risk measure yields relative measures, which enable securities of a portfolio to be classified according to risk scales.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0609.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 06-09.

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Length: 6 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:shr:wpaper:06-09

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Postal: Sherbrooke, Qu�bec, J1K 2R1
Phone: (819) 821-7233
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Web page: http://www.usherbrooke.ca/adm/faculte/departements/economique/recherche/cahier_rech.html
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Related research
Keywords: Decomposition Risk Shapley Volatility

Find related papers by JEL classification:
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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References listed on IDEAS
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  1. Chantreuil, F. & Trannoy, A., 1999. "Inequality Decomposition Values: the Trade-Off Between Marginality and Consistency," Papers 99-24, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
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This page was last updated on 2008-8-10.


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