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Survey of Literature on Portfolio Theory

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  • Cantillo, Andres

Abstract

The logical derivation of the two-factors model (The CAPM) is not empirically testable. This has paved the way for new treatments of asset pricing. However, the deterministic approach taken by most economists has prevented them to create a more useful treatment to the problems of asset pricing and diversification. Hence, the new approach contained in the post Keynesian literature has an opportunity in the formulation of a solution to both problems based on the notion of fundamental uncertainty

Suggested Citation

  • Cantillo, Andres, 2013. "Survey of Literature on Portfolio Theory," MPRA Paper 49772, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49772
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Finance; Diversification; Investment Decisions; Portfolio; Asset Price;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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