Flirting with Models cover image

Martin Tarlie - Bridging the Gap Between Financial Planning and Portfolio Management (S6E13)

Flirting with Models

00:00

Classic Finance Theory's Single Versus Multi-Period Optimization Problem

Classic finance theory has solved the single versus multi-period optimization problem. But when we start to introduce things like wealth targets and investment horizons, that's a different story. We can't just use standard power law utility function for all of our calculations anymore. What you also have to do is you have to introduce asymmetric preferences.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app