We present an overview of behavioral finance’s consistent role in portfolio theory and
market theory through utility theory. Since Bernoulli, the subjective nature of utility has been …

Minimizing the classical definition of risk should be a counterintuitive venture as the explanatory
nature of historical metrics’ construction challenges their ability to serve a predictive …

Utility should be a function consisting of two autonomous sections both positive and negative,
that needs to be configurable to the individuals it is designed to represent. This is achieved …

We introduce a nonlinear correlation coefficient metric derived from partial moments that
can be substituted for the Pearson correlation coefficient in linear instances as well. The …

We present a fundamentally unique method of nonparametric regression using clusters and
test it against classically established methods. We compare two nonlinear regression …

The utility of an investor should be based on an acceptable loss in the loss region and a
target return in the gain region of a set of investment opportunities. The level of these …

Nonlinear nonparametric statistics (NNS) algorithm offers new tools for curve fitting. A
relationship between k-means clustering and NNS regression points is explored with graphics …

While partial moments like semivariance, lower and upper partial moments have seen
acceptance by both academics and investment professionals, there are some who consider these …

The equivalence between partial moments and stochastic dominance dates back to Bawa [1]
and Fishburn [2]. We present a test for first, second, and third degree stochastic dominance …

We show that the Cumulative Distribution Function (CDF) is represented by the ratio of the
lower partial moment (LPM) ratio to the distribution for the interval in question. The addition of …