On the performance of the minimum VaR portfolio

Alexander and Baptista (2002) develop the concept of mean-VaR efficiency for portfolios and demonstrate its very close connection with mean-variance efficiency. In particular, they identify the minimum VaR portfolio as a special type of mean-variance efficient portfolio. Our empirical analysis finds...

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Main Authors: Durand, Robert, Gould, John, Maller, R.
Format: Journal Article
Published: Routledge 2010
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/27430
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author Durand, Robert
Gould, John
Maller, R.
author_facet Durand, Robert
Gould, John
Maller, R.
author_sort Durand, Robert
building Curtin Institutional Repository
collection Online Access
description Alexander and Baptista (2002) develop the concept of mean-VaR efficiency for portfolios and demonstrate its very close connection with mean-variance efficiency. In particular, they identify the minimum VaR portfolio as a special type of mean-variance efficient portfolio. Our empirical analysis finds that, for commonly used VaR breach probabilities, minimum VaR portfolios yield ex post returns that conform well with the specified VaR breach probabilities and with return/risk expectations. These results provide a considerable extension of evidence supporting the empirical validity and tractability of the mean-VaR efficiency concept.
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institution Curtin University Malaysia
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publishDate 2010
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spelling curtin-20.500.11937-274302017-09-13T15:51:04Z On the performance of the minimum VaR portfolio Durand, Robert Gould, John Maller, R. value-at-risk iShares mean-variance efficiency portfolio optimization Fama-French portfolios Alexander and Baptista (2002) develop the concept of mean-VaR efficiency for portfolios and demonstrate its very close connection with mean-variance efficiency. In particular, they identify the minimum VaR portfolio as a special type of mean-variance efficient portfolio. Our empirical analysis finds that, for commonly used VaR breach probabilities, minimum VaR portfolios yield ex post returns that conform well with the specified VaR breach probabilities and with return/risk expectations. These results provide a considerable extension of evidence supporting the empirical validity and tractability of the mean-VaR efficiency concept. 2010 Journal Article http://hdl.handle.net/20.500.11937/27430 10.1080/1351847X.2010.495484 Routledge fulltext
spellingShingle value-at-risk
iShares
mean-variance efficiency
portfolio optimization
Fama-French portfolios
Durand, Robert
Gould, John
Maller, R.
On the performance of the minimum VaR portfolio
title On the performance of the minimum VaR portfolio
title_full On the performance of the minimum VaR portfolio
title_fullStr On the performance of the minimum VaR portfolio
title_full_unstemmed On the performance of the minimum VaR portfolio
title_short On the performance of the minimum VaR portfolio
title_sort on the performance of the minimum var portfolio
topic value-at-risk
iShares
mean-variance efficiency
portfolio optimization
Fama-French portfolios
url http://hdl.handle.net/20.500.11937/27430