In this post recession time it is important to measure the possibilities offered by a society in relation to investments. To do that, we consider an investment schema I= (R;R_1,...,R_n) where R is a lower bound on the desired return and the R_i's are the return of the assets (to invest in). We introduce
In this post recession time it is important to measure the possibilities offered by a society in relation to investments. To do that, we consider an investment schema I= (R;R_1,...,R_n) whe...
In this post recession time it is important to measure the possibilities offered by a society in relation to investments. To do that, we consider an investment schema I= (R;R_1,...,R_n) where R is a lower bound on the desired return and the R_i's are the return of the assets (to invest in). We introduce
In this post recession time it is important to measure the possibilities offered by a society in relation to investments. To do that, we consider an investment schema I= (R;R_1,...,R_n) where R is a lower bound on the desired return and the R_i's are the return of the assets (to invest in). We introduce "the power to invest" , denoted by Power(I), a measure of the capability of the schema to fulfilling the requirement R. The power to invest is inspired in the Coleman's power of a collectivity to act. We consider the angel-daemon approach to uncertainty and extend it to investment schemas.
The approach tries to tune cases in-between the worst and the best scenarios and analyze them through game theory. We show how to use the power to invest to asses uncertainty in such situations and develop several examples.
Citation
Castro, J.; Gabarro, J.; Serna, M. Power to invest. A: Risk 2018- 7th Workshop on Risk Management and Insurance. "Contributions to Risk Analysis: Risk 2018". 2018, p. 135-142.