Risk managers use portfolios to diversify away the unpriced risk of individual securities. In this article we compare the benefits of portfolio diversification for downside risk in case returns are normally distributed with the case of fat-tailed distributed returns. The downside risk of a...

In 1997 two papers applying the metaheuristics Tabu Search (TS) and Heuristic Concentration (HC) to the p-median problem were published in consecutive volumes of the European Journal of Operational Research. Here we apply the method of HC some of the data sets which were used for computational...