Overview

mean-variance preferences


Show Summary Details

Quick Reference

In a model of portfolio choice with a single-period horizon these represent the preferences of an investor who evaluates alternative portfolios on the basis of their mean return and variance of return. Mean-variance preferences can be obtained from expected utility if the utility of wealth is a quadratic function or the returns on all assets have normal distributions.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.