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Adequate Decision Rules for Portfolio Choice Problems
About this book
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.
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Information
Table of contents
- Cover
- Adequate DecisionRules for Portfolio Choice Problems
- Contents
- List of Figures
- Preface
- List of Abbreviations
- Chapter 1 Introduction
- Chapter 2 Risk and Decision
- Chapter 3 Analysis of Prominent Decision Rules
- Chapter 4 Adequate Decision Rules for Portfolio Choice
- Chapter 5 Conclusions
- References
- Index
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