Measuring investment opportunities under uncertainty
Document typeConference report
Rights accessOpen Access
In order to make sound economic decisions it is important to measure the possibilities offered by a market in relation to investments. Provided an investment scheme S = (r; R1, . . . , Rn), where r is a lower bound on the desired investment return and the Ri’s are the asset yields, the power to invest measures the capability of the scheme to fulfill requirement r. The power to invest is inspired in the Coleman’s power of a collectivity to act. We exemplify this approach considering subsets of companies from stock indexes IBEX35 and DAX. We extend the power to invest to investment schemata with imprecise yields. We prove basic relations with the precise yields case and we also show that good monotonicity properties hold. Finally, we propose an analysis, through integrals of the power function, for the case of an unspecific desired return r.
CitationCastro, J.; Gabarró, J.; Serna, M. Measuring investment opportunities under uncertainty. A: European Conference on Symbolic and Quantitative Approaches to Reasoning with Uncertainty. "Symbolic and Quantitative Approaches to Reasoning with Uncertainty, 15th European Conference, ECSQARU 2019: Belgrade, Serbia, September 18-20, 2019: proceedings". Berlín: Springer, 2019, p. 481-491.
- Departament de Ciències de la Computació - Ponències/Comunicacions de congressos [1.118]
- ALBCOM - Algorismia, Bioinformàtica, Complexitat i Mètodes Formals - Ponències/Comunicacions de congressos 
- LARCA - Laboratori d'Algorísmia Relacional, Complexitat i Aprenentatge - Ponències/Comunicacions de congressos 
All rights reserved. This work is protected by the corresponding intellectual and industrial property rights. Without prejudice to any existing legal exemptions, reproduction, distribution, public communication or transformation of this work are prohibited without permission of the copyright holder