At paper we investigate problem of the investment portfolio selection from one risky asset and one risk-free asset. We use the probability criterion for the investment portfolio selection. The possibility of rebalancing of the investment portfolio is used for diversi cation of the portfolio. We nd an approximate analytical solution of the problem using the law of total probability. The investme...

The methods by which fuels can be converted into electricity all belong to different “technology families”: the “gas-fired-turbine-family”, the “coal-fired-turbine-family”, etc. Each family consists of different generations of similar technologies, as in a vintage model. Within a family, the latest generation embodies the most recent level and type of knowledge, becoming more and more outdated ...

This research shows that a portfolio of wheat varieties could enhance profitability and reduce risk over the selection of a single variety for Kansas wheat producers. Many Kansas wheat farmers select varieties solely based on published average yields. This study uses portfolio theory from business investment analysis to find the optimal, yield-maximizing and riskminimizing combination of wheat ...

Genetic algorithms (GA) are stochastic search techniques based on the mechanics of natural selection and natural genetics. In this paper, the adaptive genetic algorithms are applied to solve the portfolio selection problem in which there exist both probability constraint on the lowest return rate of portfolio and lower and upper bounds constraints on the investment rates to assets. First, the s...

THE CURRENT PAPER BY YACINE AIT-SAHALIA and Michael W. Brandt ~henceforth AB! addresses two issues that are of central concern in portfolio choice: How can portfolio advice be made realistic while remaining tractable? How can