Abstract
This chapter presents the theoretical principles for this thesis. On the one hand, the Markowitz portfolio theory is outlined, which is the basis for the portfolio models. To obtain the investor’s individual portfolio, the principles of the utility theory are needed, which are also presented. Moreover, the consistency of the Expected Utility Theory with the Markowitz portfolio theory is displayed. On the other hand, the asset pricing theory is presented, which is the theoretical explanation for different asset returns in the capital market and the fundament for testing return anomalies.
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© 2015 Springer Fachmedien Wiesbaden
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Unger, A. (2015). Theoretical Background. In: The Use of Risk Budgets in Portfolio Optimization. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-07259-9_2
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DOI: https://doi.org/10.1007/978-3-658-07259-9_2
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Publisher Name: Springer Gabler, Wiesbaden
Print ISBN: 978-3-658-07258-2
Online ISBN: 978-3-658-07259-9
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