Building “optimal” portfolios—maximizing return and minimizing risk–is a foundational concept in quantitative finance. Unfortunately, it’s not terribly practical. The problem, as many researchers have demonstrated over the years, is the elusive aspect of developing reliable estimates of return and risk. Mere mortals are notoriously ill-suited for such things. But crunching the numbers and identifying theoretically optimal strategies is still useful as a benchmark for thinking about how to design and manage your real-world asset allocation and framing history in a productive way.
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● Greece votes no. Now what?
● For starters, the finance minister resigned…
● French Finance Minister says Greece must now make the first move…
● In any case, Greece will have tough time remaining in the euro…
● Meanwhile, eurozone investor confidence rises…
● And European economic sentiment remains stable…
● But China’s stock market slump adds another risky dimension to summer outlook.