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Lines in the broader short versus long-term battle have been drawn between various camps: those favoring corporate management versus those favoring shareholder activists; those believing that corporations are best run for the exclusive benefit of shareholders versus those believing that other...
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The Kelly Capital Growth Investment Strategy (KCGIS) is to maximize the expected utility of nal wealth with a logarithmic utility function. This approach dates to Bernoulli's 1738 suggestion of log as the utility function arguing that marginal utility was proportional to the reciprocal of...
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In the oversight of most funds, the portfolio manager holds the key decision-making power. Often regarded as foundational to the investment process, a few select managers can attract billions of dollars from investors, giving the managers increased prominence, credibility, and compensation....
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build on each other: prospect theory, safety-first portfolio theory, security-potential/aspiration (SP/A) theory, and … behavioral portfolio theory. SP/A theory evolves from safety-first portfolio theory and the introduction of aspiration level. The … behavioral portfolio theory integrates the idea of mental accounts from prospect theory with the portfolio optimization framework …
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