This white paper introduces Markowitz mean-variance model with a general overview and sets out to explain why and how the finance industry has fully embraced this as a method of choice for portfolio planning. The main focus of the white paper is to bring out many aspects of the portfolio planning problem which are addressed by enhanced mean-variance models that meet the growing requirements of the finance industry. Portfolio analysis is a leading issue with fund managers who apply such models in many situations such as index tracking, performance evaluation and historical data/backtesting. This white paper will be of interest to: – Fund Managers – Trading Desk Staff – Back Office Staff – Quantitative Analysts who wish to know the general development in the market place.
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