Fallacy of the Log-Normal Approximation to Optimal Portfolio Decision-Making Over Many Periods (Classic Reprint)
Language: English
Published by Forgotten Books, 2018
- Hardcover
- New

Seller: PBShop.store UK, Fairford, GLOS, United KingdomPBShop.store UK
AbeBooks seller since June 11, 1999
Condition: New
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Add to basketItem description from seller
Seller Inventory # LW-9780266633853
- Title
- Fallacy of the Log-Normal Approximation to Optimal Portfolio Decision-Making Over Many Periods (Classic Reprint)
- Author
- Robert C. Merton
- Publisher
- Forgotten Books
- Publication year
- 2018
- Condition
- New
- Binding
- HRD
- Language
- English
- ISBN 10
- 0266633854
- ISBN 13
- 9780266633853
- Item weight
- 336 grams
Debunking a popular shortcut in long-term investing
This book exposes how a widely used log-normal shortcut can mislead portfolio choices when time horizons stretch across many periods.
It guides readers through the limits of common approximations, showing where they fail and why more careful analysis matters. You’ll see concrete examples, clear explanations, and practical warnings about relying on simple surrogates when planning for the long haul.- Learn why maximizing the expected log of wealth does not always match the best long‑term strategy
- See how substituting a log-normal distribution for actual returns can derail optimal decisions
- Understand the role of time subdivision and how it affects decision rules and risk assessment
- Explore alternative efficiency frontiers beyond mean-variance and their implications for risk tolerance
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PBShop.store UK
Fairford, GLOS, United Kingdom
AbeBooks seller since June 11, 1999
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