Hot answers tagged portfolio-management
Actuarial science traditionally focuses on estimation of joint probabilities using real data where math finance is on valuation of contracts under an arbitrary distribution. It means the first one deals with methods of estimation of future distributions (the number of accidents of a given kind, the probability of someone with a given profile to have a ...
Yes, you can formulate such a view. A lot of ways to formulate views are described in the literature (one can start here). However, your view is based on the assumption that CAPM works precisely for single stocks. This assumption will be wrong in most cases. EDIT after a comment by the OP: I think now I understand. You want to replace expert's views ...
The retail credit risk management is generally based on models that try to discriminate between good (people that probably will be able to pay back the debt) and bad customers (people that probably will not). Particularly, as the question explicitly asks for, you want to some references to allow to decide which customers, already acquired, to keep and which ...
The classical connection is the http://en.m.wikipedia.org/wiki/Esscher_transform developed for actuaries in 1932 which essentially transforms the objective probability measure into the risk neutral one used in quant finance.
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