New measure revolutionizes portfolio selection for minimizing downside risk!
The article discusses how to minimize investment risks by optimizing portfolios. The researchers found ways to create portfolios that reduce potential losses, using both fixed and random targets. They introduced a new measure called portfolio amplitude to help with this optimization. By studying how random targets affect optimal portfolios, they showed why investors might choose certain assets based on these targets. The researchers also demonstrated how to manage stock portfolios effectively using their theoretical findings.