English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Plus monthly

Global: Zendy Tools annual

Global: Zendy Tools monthly

Global: Zendy Free Plan

Return-risk models are the two pillars of modern portfolio theory, which arewidely used to make decisions in choosing the loan portfolio of a bank. Banksand other financial institutions are subjected to limited liability protection.However, in most of the model formulation, limited liability is not taken intoconsideration. Accordingly, to address this, we have, in this article, analyzedthe effect of including it in the model formulation. We formulate four models,two of them are maximizing the expected return with risk constraint, includingand excluding limited-liability, and other two are minimization of risk withthreshold level of return with and without limited-liability. Our theoreticalresults show that the solutions of the models with limited-liability producebetter results than the others, in both minimizing risk and maximizing expectedreturn. It has less risky investment than the other portfolio that solves theother model. Finally, an illustrative example is presented to support thetheoretical results obtained.

Does limited liability reduce leveraged risk?: The case of loan portfolio management