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The Effect of Errors in Means, Variances, and Covariances on Optimal Portfolio Choice

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1993

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Abstract

There is considerable literature on the strengths and limitations of mean-variance analysis. The basic theory and extensions of MV analysis are discussed in Markowitz [1987] and Ziemba & Vickson [1975]. Bawa, Brown & Klein [1979] and Michaud [1989] review some of its problems…