Banking has been a fertile area for management science applications, as is evident from the review provided in this paper. The relevant management science models are discussed in terms of the areas of bank management for which they were intended. Under dynamic balance sheet management (i.e.,...

The concept of beta as the measure of systematic risk has been widely accepted in the academic and financial community. Increasingly, betas are being used to estimate the cost of capital for corporations. Despite this, however, biases are generally present in ordinary least squares (OLS)...

In his article [Smith, P. F. 1964. Measuring risk on consumer instalment credit. Management Sci. 11(2, November) 327-340], Smith develops a simple statistical method for measuring risk on individual accounts which he feels can be used for controlling the quality of portfolios of consumer...

The uses of regression analysis to estimate market yield curves for U.S. Government securities are considered in this paper. Several possible regression models for this purpose are examined. It is found that models which regress either the before-tax yield or the after-tax yield of governments...

This paper is intended to be a broad survey of both the present and the potential role of management games in education and research. Against a background of the history of business games, we first try to characterize the present development of these games. A few management games are described...

An inter-temporal quadratic programming model for selecting portfolios of risky assets is formulated. The model's application to capital budgeting is discussed in considerable detail. This is followed by briefer discussions of its application in other areas. The paper develops a new and more...

An important restriction which frequently appears in the bid specifications for new issues of municipal bonds is that the total dollar amount to be paid for both principal and interest by the municipality in any given year of the issue must not be significantly different from the total dollar...

When an underwriting syndicate submits a bid for a new issue of municipal bonds, one of the important decisions that it must make involves the scheduling of interest coupons to be placed on the bonds. Given the bid specifications stated by the issuing municipality and some prior decisions of the...

In this paper, which is the first step in our efforts to produce an objective standard for use in measuring the investment performance of any portfolio of securities over some period of time, we introduce the average investment performance index (AIPI). The AIPI measures the average return which...

An application of linear decision rules to production and employment scheduling was described in the last issue of this journal [Holt, C. C., F. Modigliani, H. A. Simon. 1955. A linear decision rule for production and employment scheduling. Management Sci. (October).]. The hypothetical...