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Comment: Natural Behavior Toward Risk and the Question of Value Determination

Published online by Cambridge University Press:  19 October 2009

John P. Herzog
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Extract

Professor Huntsman's paper is a welcome addition to the growing literature on portfolio theory. Traditional mean-variance analysis, in spite of its obvious simplicity and its ability to explain portfolio diversification, has come under increasing attack, both for the theoretical weaknesses underlying the technique and for its failure to recognize that investors manifestly prefer returns that are positively skewed to those that are not.

Type
Discussants
Information
Journal of Financial and Quantitative Analysis , Volume 8 , Issue 2 , March 1973 , pp. 357 - 359
Copyright
Copyright © School of Business Administration, University of Washington 1973

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References

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