Portfolio Selection in the Mean-Variance Model: A Note.

This article presents an examination of a mean-variance model of portfolio selection. The author notes that this model indicates that more of an asset is not necessarily a good thing, investors are typically only willing to take on a certain amount of risk even if the asset is performing well. The model that the author has presented indicates what this upper level of investment is and identifies the conditions that are most likely to facilitate this level of investing. The author discusses what the optimal portfolio looks like and examines how risk can influence the decisions an investor makes.