RISK AND REWARD

Risk and reward

It seemed to be good news when a company of worldwide fame started marketing cutting-edge medical devices. But, it has become disastrous now that all of the people responsible for patient safety have overlooked their duties. This is the story of Articular Surface Replacement (ASR) from Johnson & Johnson's DePuy Orthopaedics. The ASR was, at first, a popular metal hip implant designed to solve t...

Mineral Exploration and Development: Risk and Reward

Reward-Risk Portfolio Selection and Stochastic Dominance

The portfolio selection problem is traditionally modelled by two different approaches. The first one is based on an axiomatic model of risk-averse preferences, where decision makers are assumed to possess an expected utility function and the portfolio choice consists in maximizing the expected utility over the set of feasible portfolios. The second approach, first proposed by Markowitz (1952), ...

contrarian investment strategy based on reward-risk stock selection criteria

stock selection criteria play a key role in contrarian portfolio construction. the usual approach is applying cumulative return as stock selection criteria however applying this criterion leads to ranking stocks without considering investment risk. in this study, we analyze contrarian strategies that are based on reward–risk stock selection criteria in contrast to ordinary contrarian strategies...

Asymptotic Behavior of Multivariate Reward Processes with Nonlinear Reward Functions