Utility functions offer a means to encode objectives and preferences in investor portfolios. The functions allow one to place a score on outcomes and then identify optimal portfolios by maximizing ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

Investing can be complicated with many moving parts, but modern portfolio theory (MPT) is a valuable tool to piece them together efficiently. If you've ever wondered how to construct a well-balanced ...

This paper seeks to develop a normative framework for analyzing the investment decision of a mutual life insurer. A criterion is suggested by which to judge management decisions. Then a way is ...