Linear statistical inference for global and local minimum variance portfolios

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Linear statistical inference for global and local minimum variance portfolios

Traditional portfolio optimization has been often criticized since it does not account for estimation risk. Theoretical considerations indicate that estimation risk is mainly driven by the parameter uncertainty regarding the expected asset returns rather than their variances and covariances. This is also demonstrated by several numerical studies. The global minimum variance portfolio has been a...

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Traditional portfolio optimization has often been criticized for not taking estimation risk into account. Estimation risk is mainly driven by the parameter uncertainty regarding the expected asset returns rather than their variances and covariances. The global minimum variance portfolio has been advocated by many authors as an appropriate alternative to the classical mean-variance optimal portf...

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ژورنال

عنوان ژورنال: Statistical Papers

سال: 2008

ISSN: 0932-5026,1613-9798

DOI: 10.1007/s00362-008-0170-z