Open AccessNote—A Note on Cord's Method of Allocating Funds to Investment Projects
Author(s) -
Dan Galai
Publication year - 1975
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.21.12.1466
Subject(s) - investment (military) , economics , finance , business , microeconomics , monetary economics , actuarial science , financial economics , political science , law , politics
In this note, we redefine and reinterpret Cord's risk constraint that will be used in selecting the optimal portfolio of investment projects. A sensitivity analysis is carried out via derivation of efficient sets of portfolios for different levels of investment. Also the theoretical foundations of the model are discussed.