scholarly journals University Endowment Committees, Modern Portfolio Theory and Performance

2020 ◽  
Vol 13 (9) ◽  
pp. 198
Author(s):  
Mimi Lord
Keyword(s):  
Decision Making ◽  
Decision Process ◽  
Portfolio Theory ◽  
Portfolio Diversification ◽  
Decision Making Process ◽  
Modern Portfolio Theory ◽  
Asset Classes ◽  
Decision Making Framework ◽  
And Performance

University endowments with broad portfolio diversification have been correlated with performance, but committees’ decision-making process has received relatively little attention. This study is unique in postulating that the committee’s learning commitment and open-mindedness are significant contributors to a decision process that is based on the principles of Modern Portfolio Theory (or, simply, Portfolio Theory). The use of Portfolio Theory as a decision-making framework leads to greater portfolio diversification, which, in turn, leads to higher risk-adjusted returns. This study also demonstrates that greater committee expertise across multiple asset classes contributes to more diversified portfolios.

Correlation of Uncorrelated Asset Classes

2008 ◽  
Vol 9 (2) ◽  
pp. 1-12
Author(s):  
Jeffry Haber ◽  
Andrew Braunstein
Keyword(s):  
Portfolio Theory ◽  
Portfolio Diversification ◽  
Random Numbers ◽  
Statistical Measure ◽  
Modern Portfolio Theory ◽  
Investment Return ◽  
Key Driver ◽  
Asset Classes

Diversification of a portfolio has long been held as one of the cornerstones of modern portfolio theory and a key driver of investment return over the long term. Correlation is the statistical measure used to quantify diversification. The degree to which asset classes correlate will determine the degree of portfolio diversification (or lack thereof). Many investment products are being sold that claim of correlation utilizing two series of random numbers, as well. For and misleading.

Developing a Systematic Decision-Making Framework: Bureaucratic Politics in Perspective

1981 ◽  
Vol 33 (2) ◽  
pp. 234-252 ◽  
Author(s):  
Jerel A. Rosati
Keyword(s):  
Decision Making ◽  
Policy Making ◽  
Executive Branch ◽  
Bureaucratic Politics ◽  
Theory Building ◽  
Decision Making Process ◽  
Decision Context ◽  
Policy Application ◽  
Decision Making Framework ◽  
Decision Making Behavior

The bureaucratic politics model has achieved great popularity in the study of decision making. Yet too often the term “bureaucratic politics” is used by scholars and practitioners without clearly stating its policy application. The decision-making behavior that occurred during the Johnson and Nixon administrations for SALT I serves to illustrate many of the limits of the model. First, the decision-making structure posited by the bureaucratic politics model is not nearly as prevalent within the executive branch as is commonly assumed. Second, even where the bureaucratic politics structure is present, the decision-making process is not always one of bargaining, compromise, and consensus. Finally, the decision context and the decision participants are ignored in the model. To provide a clearer understanding of policy-making behavior, a more systematic decision-making framework is offered, which should contribute to the development of better model- and theory-building.

An Evacuation Decision Making Model for Firefighters in Ad Hoc Robot Network

2013 ◽  
Vol 756-759 ◽  
pp. 504-508
Author(s):  
De Min Li ◽  
Jian Zou ◽  
Kai Kai Yue ◽  
Hong Yun Guan ◽  
Jia Cun Wang
Keyword(s):  
Decision Making ◽  
Markov Decision Process ◽  
Decision Process ◽  
Ad Hoc ◽  
Decision Making Process ◽  
Decision Method ◽  
Markov Decision ◽  
Critical Problems ◽  
Fire Scene ◽  
Decision Making Model

Evacuation for a firefighter in complex fire scene is challenge problem. In this paper, we discuss a firefighters evacuation decision making model in ad hoc robot network on fire scene. Due to the dynamics on fire scene, we know that the sensed information in ad hoc robot network is also dynamically variance. So in this paper, we adapt dynamic decision method, Markov decision process, to model the firefighters decision making process for evacuation from fire scene. In firefighting decision making process, we know that the critical problems are how to define action space and evaluate the transition law in Markov decision process. In this paper, we discuss those problems according to the triangular sensors situation in ad hoc robot network and describe a decision making model for a firefighters evacuation the in the end.

A Locational Decision Making Framework for Shipbreaking under Multiple Criteria

2016 ◽  
Vol 7 (1) ◽  
pp. 76-97 ◽  
Author(s):  
Joshin John ◽  
Sushil Kumar
Keyword(s):  
Decision Making ◽  
Indian Subcontinent ◽  
Business Environment ◽  
Multiple Criteria ◽  
Decision Making Process ◽  
Multiple Factors ◽  
Locational Decision ◽  
Decision Making Framework ◽  
Work Done ◽  
Relevant Factors

The decision making process for shipbreaking is complicated and is dependent on multiple factors. However, due to the vastly unorganized nature of shipbreaking industry in major shipbreaking locations, there is little work done to the best of the authors' knowledge, wherein these factors are mapped, weighed and integrated in the form of a comprehensive decision making framework. In recent years, although there have been significant efforts by researchers to capture the process of shipbreaking and recycling in literature, a comprehensive decision support system that encapsulates the multiple criteria for shipbreaking in a quantifiable form, is yet to be developed. This paper attempts to bridge this gap, by formulating a decision making framework, particularly for selecting the shipbreaking facility and the extent of recycling subsequent to ship disassembly, using AHP methodology. The framework considers the relevant factors, and is useful not only for shipping companies and cash brokers for decision making, but also provides insights vis-à-vis the migrating pattern of shipbreaking industry, particularly from Indian subcontinent to China, as observed in the contemporary business environment.

scholarly journals Integrated approach for risk management in servitization decision-making process

2020 ◽  
Vol 26 (7) ◽  
pp. 1949-1977 ◽  
Author(s):  
Sarra Dahmani ◽  
Xavier Boucher ◽  
Didier Gourc ◽  
Sophie Peillon ◽  
François Marmier
Keyword(s):  
Decision Making ◽  
Decision Process ◽  
Positive Impact ◽  
Practical Implication ◽  
Risk Identification ◽  
Decision Makers ◽  
Decision Making Process ◽  
Research Approach ◽  
Content Type ◽  
Action Research Approach

PurposeThe paper proposes an innovative systemic method helping decision-makers to control servitization transition process, through decision process risk diagnosis.Design/methodology/approachThe proposed method is based on the modeling of decision processes and risk identification and analysis. This method was based on an action-research approach, in close relationship with two companies (SMEs). The paper develops the feasibility experiment at Automelec company.FindingsThe method was successfully implemented and delivered concrete diagnosis results.Research limitations/implicationsThe generalization of the applicability of the method needs to be tested on several different cases.Practical implicationsThe first practical implication is related to the efficiency of the method to help decision-makers in a servitization context to limit uncertainty and get a global view of the weaknesses of their decision-making process, it raises their awareness about servitization transition for their companies. Furthermore, the method also helps to explain the strategy of a servitization transition. It enhances the level of maturity of the decision process of the company, and can be used as a training/learning tool for managers.Social implicationsThe results brought by the research contribute to give the decision-making boards for organization living a servitization transition and especially SMEs a better control over the servitization decision process and related risks, which will increase the economic stability of the company and its vision over long, medium and short horizons. This will bring positive impact on the overall economic and social environment and networks of the servitized SME, and enhance the confidence of coworkers, subcontractors and clients.Originality/valueThe first originality of the paper is related to the new way of considering risk, not only as an analysis criterion but as the central driver in steering a strategic transition for the company, such as servitization. The second originality of the study is about assessing risk occurrence over a decision-making process through decision reliability and decision confidence.

scholarly journals Logarithmic Hybrid Aggregation Operators Based on Single Valued Neutrosophic Sets and Their Applications in Decision Support Systems

Symmetry ◽  
2019 ◽  
Vol 11 (3) ◽  
pp. 364 ◽  
Author(s):  
Shahzaib Ashraf ◽  
Saleem Abdullah ◽  
Florentin Smarandache ◽  
Noor Amin
Keyword(s):  
Decision Making ◽  
Decision Process ◽  
Aggregation Operators ◽  
Decision Making Process ◽  
Practical Case ◽  
Multi Criteria Decision Making ◽  
Comparison Analysis ◽  
Negative Interaction ◽  
Positive Interaction ◽  
Neutrosophic Sets

Recently, neutrosophic sets are found to be more general and useful to express incomplete, indeterminate and inconsistent information. The purpose of this paper is to introduce new aggregation operators based on logarithmic operations and to develop a multi-criteria decision-making approach to study the interaction between the input argument under the single valued neutrosophic (SVN) environment. The main advantage of the proposed operator is that it can deal with the situations of the positive interaction, negative interaction or non-interaction among the criteria, during decision-making process. In this paper, we also defined some logarithmic operational rules on SVN sets, then we propose the single valued neutrosophic hybrid aggregation operators as a tool for multi-criteria decision-making (MCDM) under the neutrosophic environment and discussd some properties. Finally, the detailed decision-making steps for the single valued neutrosophic MCDM problems were developed, and a practical case was given to check the created approach and to illustrate its validity and superiority. Besides this, a systematic comparison analysis with other existent methods is conducted to reveal the advantages of our proposed method. Results indicate that the proposed method is suitable and effective for decision process to evaluate their best alternative.

Decision-Making Process in Intermodal Transportation

2000 ◽  
Vol 1707 (1) ◽  
pp. 86-93 ◽  
Author(s):  
Dimitrios A. Tsamboulas ◽  
Seraphim Kapros
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Third Party ◽  
Decision Making Process ◽  
Intermodal Transportation ◽  
Transportation Services ◽  
Cost Criterion ◽  
And Performance ◽  
Logistic Support ◽  
A Minor

A methodological framework with models is provided, which correlates behavioral and perceptual issues related to the use of intermodal transportation with the commonly used physical and economic criteria in modal choice approaches. With factor analysis, key variables and common decision patterns related to the choice of intermodal transportation are identified. Factor analysis is applied to capture the actors’ perception of the importance of variables affecting the decision-making process. With multiple regression analysis, models simulating the decision-making process are developed for actor groups, utilizing actual quantitative data of cost and performance of intermodal transportation services. Three decision patterns and the respective actor groups’ profiles are identified. The first group consists of actors who decide almost exclusively according to the cost criterion; these actors are intensive users of intermodal transportation. The second group has actors who decide according to both quality and cost criteria; using intermodal transportation by this actor group constitutes a minor portion of its total transport volumes. The third group consists of actors who are influenced in their decisions by specific logistics needs, beyond the physical transportation activity itself. The offer of third-party end-haul operations or refrigerated storage areas is an example of such services, necessitating specific logistic support. For each actor group a model is developed, which associates values of the quantitative variables affecting the decision-making process with the share of intermodal transportation in the total volume of transport handled by the group. The application of the model defines the extent to which changes in the values of relevant variables may shift a decision toward the use of intermodal transportation.

scholarly journals Evaluation of a shared decision-making intervention for dialysis choice at four Danish hospitals: a qualitative study of patient perspective

BMJ Open ◽  
2019 ◽  
Vol 9 (10) ◽  
pp. e029090 ◽  
Author(s):  
Jeanette Finderup ◽  
Jens Dam Jensen ◽  
Kirsten Lomborg
Keyword(s):  
Decision Making ◽  
Shared Decision Making ◽  
Decision Process ◽  
Decision Aid ◽  
Accurate Information ◽  
Decision Making Process ◽  
Shared Decision ◽  
Dialysis Modality ◽  
Individual Interviews ◽  
Informed Preferences

ObjectiveTo evaluate the ‘Shared Decision-making and Dialysis Choice’ (SDM-DC) intervention with regard to patients’ experience and involvement.DesignSemistructured individual interviews and systematic text condensation for data analysis.SettingThe SDM-DC intervention was implemented and evaluated at four different hospitals in Denmark.ParticipantsA total of 348 patients had received the SDM-DC intervention, and of these 29 patients were interviewed.InterventionsSDM-DC was designed for patients facing a choice of dialysis modality. The available modalities were haemodialysis and peritoneal dialysis, either performed by patients on their own or with help from a healthcare professional. The intervention was tailored to individual patients and consisted of three meetings with a dialysis coordinator who introduced a patient decision aid named ‘Dialysis Choice’ to the patient.FindingsThe following were the four main findings: the decision was experienced as being the patient’s own; the meetings contributed to the decision process; ‘Dialysis Choice’ contributed to the decision process; and the decision process was experienced as being iterative.ConclusionsThe patients experienced SDM-DC as involving them in their choice of dialysis modality. Due to the iterative properties of the decision-making process, a shared decision-making intervention for dialysis choice has to be adapted to the needs of individual patients. The active mechanisms of the meetings with the dialysis coordinator were (1) questions to and from the patient, and (2) the dialysis coordinator providing accurate information about the options. The overview of options and the value clarification tool in the decision aid were particularly helpful in establishing a decision-making process based on informed preferences.

scholarly journals Portfolio construction and risk management: theory versus practice

2018 ◽  
Vol 53 (3) ◽  
pp. 345-365
Author(s):  
Stefan Colza Lee ◽  
William Eid Junior
Keyword(s):  
Risk Management ◽  
Performance Evaluation ◽  
Asset Management ◽  
Value At Risk ◽  
Portfolio Theory ◽  
Portfolio Construction ◽  
Modern Portfolio Theory ◽  
Content Type ◽  
Construction Risk ◽  
And Performance

Purpose This paper aims to identify a possible mismatch between the theory found in academic research and the practices of investment managers in Brazil. Design/methodology/approach The chosen approach is a field survey. This paper considers 78 survey responses from 274 asset management companies. Data obtained are analyzed using independence tests between two variables and multiple regressions. Findings The results show that most Brazilian investment managers have not adopted current best practices recommended by the financial academic literature and that there is a significant gap between academic recommendations and asset management practices. The modern portfolio theory is still more widely used than the post-modern portfolio theory, and quantitative portfolio optimization is less often used than the simple rule of defining a maximum concentration limit for any single asset. Moreover, the results show that the normal distribution is used more than parametrical distributions with asymmetry and kurtosis to estimate value at risk, among other findings. Originality/value This study may be considered a pioneering work in portfolio construction, risk management and performance evaluation in Brazil. Although academia in Brazil and abroad has thoroughly researched portfolio construction, risk management and performance evaluation, little is known about the actual implementation and utilization of this research by Brazilian practitioners.

scholarly journals Mechanisms Underlying Age- and Performance-related Differences in Working Memory

2011 ◽  
Vol 23 (6) ◽  
pp. 1298-1314 ◽  
Author(s):  
Kirk R. Daffner ◽  
Hyemi Chong ◽  
Xue Sun ◽  
Elise C. Tarbi ◽  
Jenna L. Riis ◽  
...  
Keyword(s):  
Decision Making ◽  
Working Memory ◽  
Right Hemisphere ◽  
Age Groups ◽  
Task Demands ◽  
Decision Making Process ◽  
High Performing ◽  
Young Subjects ◽  
And Performance ◽  
P3 Component

This study took advantage of the subsecond temporal resolution of ERPs to investigate mechanisms underlying age- and performance-related differences in working memory. Young and old subjects participated in a verbal n-back task with three levels of difficulty. Each group was divided into high and low performers based on accuracy under the 2-back condition. Both old subjects and low-performing young subjects exhibited impairments in preliminary mismatch/match detection operations (indexed by the anterior N2 component). This may have undermined the quality of information available for the subsequent decision-making process (indexed by the P3 component), necessitating the appropriation of more resources. Additional anterior and right hemisphere activity was recruited by old subjects. Neural efficiency and the capacity to allocate more resources to decision-making differed between high and low performers in both age groups. Under low demand conditions, high performers executed the task utilizing fewer resources than low performers (indexed by the P3 amplitude). As task requirements increased, high-performing young and old subjects were able to appropriate additional resources to decision-making, whereas their low-performing counterparts allocated fewer resources. Higher task demands increased utilization of processing capacity for operations other than decision-making (e.g., sustained attention) that depend upon a shared pool of limited resources. As demands increased, all groups allocated additional resources to the process of sustaining attention (indexed by the posterior slow wave). Demands appeared to have exceeded capacity in low performers, leading to a reduction of resources available to the decision-making process, which likely contributed to a decline in performance.

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