Veranstaltungen

Lecture

Portfolio Management


Name in diploma supplement
Portfolio Management
Organisational Unit
Lehrstuhl für Data Science in Energy and Environment
Lecturers
Prof. Dr. Florian Ziel
SPW
2
Language
English
Cycle
irregular
Participants at most
no limit
Participants

Preliminary knowledge

matrix algebra and multivariate statistics (esp. multivariate normal distribution)

Abstract

The students study the general Markowitz portfolio theory on optimal portfolio selection with and without risk-free asset. They study problems in the application concerning estimation risk, like the Jobson-Korkie experiment and possible solutions. The theory is applied to problem in financial and commodity markets.

Contents

  • Introduction to portfolio theory
  • Markowitz portfolio theory without risk-free asset
  • Markowitz portfolio theory with risk-free asset
  • Estimation risk and Jobson-Korkie experiment
  • Optimal portfolio allocation under parameter uncertainty

Literature

  • Brandt, M. W. (2009). Portfolio choice problems. Handbook of financial econometrics, 1, 269-336.
  • Kan, R., & Zhou, G. (2007). Optimal portfolio choice with parameter uncertainty. Journal of Financial and Quantitative Analysis, 42(3), 621-656.
  • Tu, J., & Zhou, G. (2011). Markowitz meets Talmud: A combination of sophisticated and naive diversification strategies. Journal of Financial Economics, 99(1), 204-215.

Teaching concept

The students study portfolio management theory in the lecture. They discuss and apply the theory in tutorials.

Lecture: Portfolio Management (WIWI‑C1127)