Abstract
One afternoon in 1952, at the library of University of Chicago, a young researcher had a Eureka moment. As part of his PhD dissertation, Harry Markowitz was trying to find a way to construct optimal portfolios of financial securities for managing investment risk. Since individuals have different levels of tolerance for risk, Markowitz was looking for a way to build portfolios such that for a given level of risk tolerance, the expected return is maximized.1 If an individual has a higher risk tolerance, then he or she should be rewarded by a potentially higher return.
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© 2013 Ozgur Gurtuna
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Gurtuna, O. (2013). Risk Management. In: Fundamentals of Space Business and Economics. SpringerBriefs in Space Development. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6696-3_7
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DOI: https://doi.org/10.1007/978-1-4614-6696-3_7
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