This paper presents an optimal portfolio algorithm under equilibrium conditions to evaluate future cash flows. The Algorithm employs expected return-risk approximation of utility function and bivariate distribution of cash flows of an investment and returns on market portfolios. The proposed...

The main finding of this paper is that under financial market impediments and asymmetric information, a mutually guaranteed and correctly schemed and priced insurance credit contract should have an abnormal actuarial profit. Such a contract improves welfare by simultaneously eliminating...