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Optimization Book with R. (Style Based Analysis, MV Portfoli

2 messages · Mark Leeds, Christian Prinoth

#
I know of 2 books but neither are R specific
and one is S+ specific.

1) introduction to modern portfolio optimization
with nuopt, s-plus and s+bayes.

2) portfolio construction and risk budgeting is
more of a theoretical ( also applied in
the sense of it gives examples )  book without
specific commands.

Both are by Bernd Scherer and the
first is Co-Auhored by Douglass Martin. 
They are both decent but I was looking for an example yesterday of the best way to include the notional in
a portfolio optimization ( i.e: the maximum
dollars one wants to spend on the long and short side
of a market neutral portfolio ) and I couldn't
find anything relevant in either. I'm not
saying the books aren't good but I was
hoping to find a simple example and I didn't.

2) gets pretty theoretical in terms of
handling various issues ( downside risk,
transaction cost error etc ).

for 1) you really need S+ in my opinion.
#
This paper:

http://www.stanford.edu/~boyd/papers/portfolio.html

Contains some useful advice on doing what you want with standard tools
like solve.QP

-----Original Message-----
They are both decent but I was looking for an example yesterday of the
best way to include the notional in a portfolio optimization ( i.e: the
maximum dollars one wants to spend on the long and short side of a
market neutral portfolio ) and I couldn't find anything relevant in
either. I'm not saying the books aren't good but I was hoping to find a
simple example and I didn't.

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