@article {Dubil82, author = {Robert Dubil}, title = {The Risk-Return Trade-off in-Converting Wealth into Cash}, volume = {12}, number = {3}, pages = {82--86}, year = {2003}, doi = {10.3905/joi.2003.319559}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article examines the risk-return trade-off an individual or trustee who decides to liquidate a position in an asset. Converting concentrated wealth into cash is not without risk as it may not be instantaneous. Just like the selection of an optimal asset mix along the {\textquotedblleft}efficient frontier,{\textquotedblright} the liquidation problem requires careful balancing of the exposure to the asset return variance (risk) against sale-induced price concessions (cost). An appealing decision tool is found in a value-at-risk function used by banks to manage overall trading risk. The individual maximizes the expected profit from the sale strategy minus a penalty function for exposure to the price risk. The penalty {\textquotedblleft}weight{\textquotedblright} is related to a selected loss confidence interval.}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/12/3/82}, eprint = {https://joi.pm-research.com/content/12/3/82.full.pdf}, journal = {The Journal of Investing} }