The appearance of Markowitz Model significantly improves the way investors optimize their financial portfolio, allowing them to reduce collective risks different assets and further maximize profitability portfolio. This article aims discuss analyze feasibility in practical cases as definition this mean variance model leans theoretical aspect finance like efficient market rational investors. dat...

By optimizing its outsourcing strategy, a company faces the opportunity to lower the overall costs of its IT project portfolio. Without considering risk and diversification effects appropriately, companies make wrong decisions about how much of a project is reasonable to outsource. In this paper, we elaborate a model to identify a project’s optimal degree of outsourcing at a fixed price, consid...

The growth-optimal portfolio is designed to have maximum expected log-return over the next rebalancing period. Thus, it can be computed with relative ease by solving a static optimization problem. The growthoptimal portfolio has sparked fascination among finance professionals and researchers because it can be shown to outperform any other portfolio with probability 1 in the long run. In the sho...

We investigate the optimal strategy over a finite time horizon for a portfolio of stock and bond and a derivative in an multiplicative Markovian market model with transaction costs (friction). The optimization problem is solved by a Hamilton-Bellman-Jacobi equation, which by the verification theorem has well-behaved solutions if certain conditions on a potential are satisfied. In the case at ha...