Optimization of the Investment Portfolio in the Conditions of Uncertainty

Portfolio analysis exists, perhaps, as long, as people think about acceptance of rational decisions connected with use of the limited resources. However the occurrence moment of portfolio analysis can be dated precisely enough is having connected it with a publication of pioneer work of Harry Markovittz (Markovitz H. Portfolio Selection) in 1952. The model offered in this work, simple enough in essence, has allowed catching the basic features of the financial market, from the point of view of the investor, and has supplied the last with the tool for development of rational investment decisions. The central problem in Markovitz theory is the portfolio choice that is a set of operations. Thus in estimation, both separate operations and their portfolios two major factors are considered: profitableness and risk of operations and their portfolios. The risk thus receives a quantitative estimation. The account of mutual correlation dependences between profitablenesses of operations appears the essential moment in the theory. This account allows making effective diversification of portfolio, leading to essential decrease in risk of a portfolio in comparison with risk of the operations included in it. At last, the quantitative characteristic of the basic investment characteristics allows defining and solving a problem of a choice of an optimum portfolio in the form of a problem of quadratic optimization.

Web-Based Information Systems in the Stock Market Financial Information Domain

The information domain is a recognised sphere for the influence, ownership, and control of information and it's specifications, format, exploitation and explanation (Thompson, 1967). The article presents a description of the financial information domain issues related to the organisation and operation of a stock market. We review the strategic, institutional and standards dimensions of the stock market information domain in relation to the current semantic web knowledge and how and whether this could be used in modern web based stock market information systems to provide the quality of information that their stakeholders want. The analysis is based on the FINE model (Blanas, 2003). The analysis leads to a number of research questions for future research.