PT  - JOURNAL ARTICLE
AU  - Fred Viole
AU  - David Nawrocki
TI  - The Utility of Wealth in an Upper- and Lower-Partial<br/> Moment Fabric
AID  - 10.3905/joi.2011.20.2.058
DP  - 2011 May 31
TA  - The Journal of Investing
PG  - 58--85
VI  - 20
IP  - 2
4099  - https://pm-research.com/content/20/2/58.short
4100  - https://pm-research.com/content/20/2/58.full
AB  - Utility should be a function consisting of two autonomous sections both positive and negative, that needs to be configurable to the individuals it is designed to represent. This is achieved through the target by which individuals measure their investments against as well as their individual interpretations of target variances. Historical utility functions tend to generalize these distinctions in order to apply them to a broader scope of the population and project a descriptive theory. Instead of the observed fitting the function, we have the function fit the observed in an effort to combine descriptive and normative techniques.TOPICS: Statistical methods, portfolio construction, risk management