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Cross Fertilizations and Controversies in the Origins and Evolution of Portfolio Selection Models

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  • Eduardo Ariel Corso

    () (BCRA – UBA)

Abstract

This paper describes the main cross fertilizations between monetary theory and portfolio theory, which characterized the origins and evolution of the latter. In addition, we explore the critics and controversies arising from the seminal works of Markowitz and Tobin, as well as the new generation of optimal portfolio models that emerged from these discussions.

Suggested Citation

  • Eduardo Ariel Corso, 2013. "Cross Fertilizations and Controversies in the Origins and Evolution of Portfolio Selection Models," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(68), pages 43-74, June.
  • Handle: RePEc:bcr:ensayo:v:1:y:2013:i:68:p:43-74
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    File URL: http://www.bcra.gov.ar/pdfs/investigaciones/68_Corso.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Harry Markowitz; higher-order moments approach to portfolio selection; James Tobin; liquidity preference; mean-variance approach; money demand; monetary theory; portfolio theory;

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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