References

Multi-period model of financial market vs its single-period counterpart

L.T. Nielsen and M.Vassalou, 2004. Sharpe Ratios and Alphas in Continuous Time. //  Journal of Financial and Quantitative Analysis, vol. 39, no. 1 (March 2004):103–114

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J. Cvitanic, A. Lazrak and  T. Wang, 2003. Sharpe ratio as a performance measure in a multi-period model. // Submitted to The Journal of Economic Dynamics and Control.

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Portfolio optimization

Three-fund portfolio

R. Kan, and G. Zhou, 2005. Optimal estimation for economic gains: Portfolio Choice with Parameter Uncertainty. // Working paper, University of Toronto.

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Target Shortfall Probability Minimization

M.J. Stutzer, 2003. Asset Allocation Advice: Reconciling Expected Utility with Shortfall Risk. // Working paper, University of Colorado.

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Worst-case scenario optimization

L. Garlappi, R. Uppal and T. Wang, 2005. Portfolio Selection with Parameter and Model Uncertainty: A Multi-Prior Approach. // CEPR Discussion Paper No. 5148

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Estimation of parameters

Maximum-likelihood estimates for full samples

R. F. Stambaugh, 1997. Analyzing Investments whose Histories Differ in Length. // Journal of Financial Economics, 45, 285-331.

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Pioneer paper about shrinkage estimates

C. Stein, 1956. Inadmissibility of the Usual Estimator for the Mean of a Multivariate Normal Distribution. // Proceedings of the Third Berkeley Symposium on Mathematical Statistics and Probability, Vol. 1, 197-206 University of California Press, Berkeley

Shrinkage estimate of average returns

Ph. Jorion, 1986. Bayes-Stein Estimation for Portfolio Analysis. // Journal of Financial and Quantitative Analysis, 21, 279-292.

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Shrinkage estimate of covariance matrix

O. Ledoit and M. Wolf, 2004. Honey, I shrunk the Sample Covariance Matrix. // The Journal of Portfolio Management, Summer 2004.

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Joint shrinkage estimate based on the selected asset pricing model

L. Pastor and R.F. Stambaugh, 1999. Comparing Asset Pricing Models: An Investment Perspective. // Journal of Financial Economics, 56, 335-381.

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Zh. Wang, 2005. A Shrinkage Approach to Model Uncertainty and Asset Allocation. // The Review of Financial Studies, 18, 2, 673-705.

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Joint shrinkage estimate based on a missing factor

A.C. Mackinlay and L. Pastor, 2000. Asset Pricing Models: Implications for Expected Returns and Portfolio Selection. // The Review of Financial Studies, 13, 883-916.

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R. Kan and G. Zhou, 2005. Optimal estimation for economic gains: Portfolio Choice with Parameter Uncertainty. // Working paper, University of Toronto.

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The Black-Litterman model

T.M. Idzorek, 2004. A Step-By-Step Guide to the Black-Litterman Model. // Working paper.

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J. Walters, 2008. The Black-Litterman Model: A Detailed Exploration. // Working paper.

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Transaction costs

K. Muthuraman and S. Kumar, 2006. Multidimensional Portfolio Optimization with Proportional Transaction Costs. // Mathematical Finance, Vol. 16, No. 2, 301-335.

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Value-at-Risk and Conditional Value-at-Risk

Coherent risk measures

P. Artzner, F. Delbaen, J.-M. Eber and D. Heath, 1999. Coherent measures of risk. // Mathematical Finance, 9, 203-228.

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VaR-CVaR calculation for non-central t-distribution

A. Andreev and A. Kanto, 2004. A note on calculation of CVaR for Student's distribution. // Working paper of Helsinki School of Economics, W 369

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VaR calculation using Cornish-Fisher expansion

P. Zangari, 1996. A VaR methodology for portfolios that include options. // RiskMetrics Monitor, 1st quarter, 4-12

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