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Portfolio Selection with Higher Moments and Application on Zagreb Stock Exchange

Tihana Škrinjarić ; Faculty of Economics and Business, University of Zagreb, Croatia


Puni tekst: engleski pdf 996 Kb

str. 65-78

preuzimanja: 1.613

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Sažetak

The Modern Portfolio Theory (MPT) has started a revolution in academic and investors’
circles since 1950s. In spite of the popularity of Markowitz’s portfolio selection, many
critiques have been emerging throughout the years. One of them is the non normality of
empirical return distributions. Accordingly, models have been developed in order to incorporate
the aforementioned non normality. This paper focuses on the role of these models
and optimizes a model with incorporated portfolio higher moments on Zagreb Stock Exchange.
The results indicate that incorporating higher moments into the analysis changes
the results sustainably when compared to the initial model.

Ključne riječi

portfolio selection; optimization; Zagreb Stock Exchange; stocks; polynomial goal programming

Hrčak ID:

102022

URI

https://hrcak.srce.hr/102022

Datum izdavanja:

1.5.2013.

Posjeta: 2.558 *