Publisher Summary The central problem for gamblers is to find positive expectation bets. But
the gambler also needs to know how to manage his money, ie, how much to bet. In the stock …

In 1956, two Bell Labs scientists discovered the scientific formula for getting rich. One was
mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked …

Academics and practitioners usually optimize portfolios on the basis of mean and variance.
They set the goal of maximizing risk-adjusted returns measured by the Sharpe ratio and thus …

Some ideas from established economic theories, such as perpetual growth or sustainable
growth, are not consistent with basic scientific principles. Could better policies be developed …

In 1738 Daniel Bernoulli postulated that the marginal utility of an extra amount of money was
proportional to the person's wealth. So u (w)= where u is the investor's utility function, primes …

The growth optimal portfolio (GOP) is a portfolio which has a maximal expected growth rate
over any time horizon. As a consequence, this portfolio is sure to outperform any other …

Rapid accumulation of empirical studies in behavioral finance calls for a unified and
consistent theoretical synthesis. Instead of building up a behavioral theory of economics …

This paper analyzes the predictivity and return performance of the Barmish-Iwarere
feedback trading algorithm described in [1]. In the first part of the paper, we study the trade …

The optimal geometric mean return is an important property of an asset. As a derivative of
the underlying asset, the option also has this property. In this paper, we show that the …

This paper proposes a flexible technique for selecting portfolios in an environment which
includes thinly traded shares. The proposal uses the Capital Asset Pricing Model with a …