One of the main arguments of behavioral finance is that some properties of asset prices are most probably regarded as deviations from fundamental value and they are generated by the participation of traders who are not fully rational, thus called noise traders. Noise trader theory postulates...

The classical Mean Variance (MV) portfolio optimization has some weaknesses which do not satisfy today’s financial needs when working with real data. At the core, among other shortcomings, the requirement of normal distributed returns renders the MV optimized portfolios Second Order Stochastic...