We study rankings of completely and partially diversified portfolios and also of specialized assets when investors follow so-called Markowitz preferences. It turns out that diversification strategies for Markowitz investors are more complex than in the case of risk-averse and risk-inclined...

The current financial turbulence in Europe inspires and perhaps requires researchers to rethink how to measure incomes, wealth, and other parameters of interest to policy-makers and others. The noticeable increase in disparities between less and more fortunate individuals suggests that measures...

The distortion parameter reflects the amount of loading in insurance premiums. A specific value of a given premium determines a value of the distortion parameter, which depends on the underlying loss distribution. Estimating the parameter, therefore, becomes a statistical inferential problem,...