This is a summary of links featured on Quantocracy on Wednesday, 08/26/2020. To see our most recent links, visit the Quant Mashup. Read on readers!
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Satisficing and optimizing [OSM]In our last post, we explored mean-variance optimization (MVO) and finally reached the efficient frontier. In the process, we found that different return estimates yielded different frontiers both retrospectively and prospectively. We also introduced the concept of satsificing, originally developed by Herbert Simon. Simply put, satisficing is choosing the best available solution afforded by a