Minimizing the classical definition of risk should be a counterintuitive venture as the explanatory nature of historical metrics' construction challenges their ability to serve a predictive purpose on a non-stationary process. We uncover an ill conceived bias in these metrics and discover they...

The equivalence between partial moments and stochastic dominance dates back to Bawa and Fishburn. We present a test for first, second, and third degree stochastic dominance between two variables using Lower Partial Moments. The results uphold Hadar and Russell's original conclusions about the...

Utility should be a function consisting of two autonomous sections both positive and negative, that needs to be configurable to the individuals it is designed to represent. This is achieved through the target by which individuals measure their investments against as well as their individual...