{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture14-2004 - Farm Portfolio Problem Part III Lecture...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Farm Portfolio Problem: Part III Lecture XIV
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Fall 2004 2 Target MOTAD The target MOTAD model is a two-attribute risk and return model. Return is measured as the sum of the expected return of each activity multiplied by the activity level.
Image of page 2
Fall 2004 3 Risk is measured as the expected sum of the negative deviations of the solution results from a target-return level. Risk is then varied parametrically so that a risk- return frontier can be traced out.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Fall 2004 4 Mathematically, the model is stated as max ( ) x j j j n ij j j n i rj j j n r r r r n E z c x st a x b T c x y p y = - - = = = = = 1 1 1 1 0 λ
Image of page 4
Fall 2004 5 Discrete Sequential Stochastic Programming Target MOTAD, direct expected utility, and even MOTAD begin to develop the concept of constraints being stochastic or met with some level of probability. In target MOTAD, income under a certain state exceeds the target level of income with some probability.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Fall 2004 6 In direct expected utility maximization the level of wealth transferred to the objective function
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern