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This paper discusses two optimal allocation problems According to the central limit theorem, sums of independently and identically distributed random variables with finite variance tend toward a normal distribution, regardless of the underlying. We consider different hypotheses of portfolio selection with stable distributed returns for each of them
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In particular, we study the optimal allocation. This paper studies capital allocation problems with the aggregate risk exceeding a certain threshold We consider capital allocation as the outcome of a particular optimisation problem, in which the weighted sum of measures for the deviations of the business unit’s losses from their respective allocated capitals.
The comparison made between the stable and the normal approach in terms of the optimal allocation problem has indicated that taking the assumption about stable distributed asset returns allows.
In finance, changes in the log values of forex rates, price indices, and stock prices are assumed to be normally distributed Any investment has two aspects The approach relies on an optimization argument, requiring that the weighted sum of measures for the deviations of the business unit's losses from their respective allocated capitals be.
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