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Mean variance criterion |
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Mean variance criterionThe selection of portfolios based on the means and variances of their returns. The choice of the higher expected return portfolio for a given level of variance or the lower variance portfolio for a given expected return.Mean variance criterion Similar MatchesPareto criterionPareto criterionThe criterion that for change in an economy to be viewed as socially beneficial it should be Pareto-improving. Maximum expected return criterion (MERC)Maximum expected return criterion (MERC)Standard that one choose the asset with the highest anticipated return. Kaldor-Hicks CriterionKaldor-Hicks CriterionThe criterion that, for a change in policy or policy regime to be viewed as beneficial, the gainers should be able to compensate the losers and still be better off. The criterion does not require that the compensation actually be paid, which, if it did, would make this the same as the Pareto criterion. Due to Kaldor (1939), Hicks (1940). Maximum return criterion (MRC)Maximum return criterion (MRC)Standard that one choose the asset with the highest return. |
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