We present an agent-based model (ABM) of a financial market with n 1 risky assets, whose price dynamics result from the interaction between rational fundamentalists and trend following imitative noise traders. The interactions and opinion formation of the noise traders are described by an...

The influence of the CAPM theory on the financial theory of investment has increased with the development of passive management. Today, equity or fixed-income market portfolios can easily be defined using equity and fixed-income indexes. These indexes also play an important role in active...