{"version":"1.0","provider_name":"Ra\u00fal Bartolom\u00e9","provider_url":"https:\/\/raulbartolome.com\/es","author_name":"Ra\u00fal Bartolom\u00e9","author_url":"https:\/\/raulbartolome.com\/es\/author\/administrator\/","title":"Foreign Exchange Products and Drawbacks and Limitations of the Markowitz Portfolio Theory - Ra\u00fal Bartolom\u00e9","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"tehJAj4eUx\"><a href=\"https:\/\/raulbartolome.com\/es\/producto\/international-financial-management\/\">Productos de divisas y desventajas y limitaciones de la teor\u00eda de la cartera de Markowitz<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/raulbartolome.com\/es\/producto\/international-financial-management\/embed\/#?secret=tehJAj4eUx\" width=\"600\" height=\"338\" title=\"\u00abForeign Exchange Products and Drawbacks and Limitations of the Markowitz Portfolio Theory\u00bb \u2014 Ra\u00fal Bartolom\u00e9\" data-secret=\"tehJAj4eUx\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/\/# sourceURL=https:\/\/raulbartolome.com\/wp-includes\/js\/wp-embed.min.js\n<\/script>","thumbnail_url":"https:\/\/raulbartolome.com\/wp-content\/uploads\/2019\/05\/Foreign-Exchange-Products-and-Drawbacks-and-Limitations-of-the-Markowitz-Portfolio-Theory.png","thumbnail_width":1442,"thumbnail_height":2014,"description":"This assignment is structured in two chapters. Firstly, a summary of foreign exchange products: FX forwards, FX futures, FX options and currency swaps. Secondly, drawbacks and limitations of the Markowitz portfolio theory.  A summary of mean-variance portfolio theory limitations studied are:   It does not protect against improbable black swan events,  based on historical data that doesn\u2019t guarantee future returns,  challenging to identify uncorrelated markets due to financial globalization,  excludes transaction and taxation cost,  might not represent investor utility function,  prone to errors due to input sensitivity,  insensitive to fat-tailed and sked returns,  difficult to adapt for multi-periods and  others measure of risk such as VaR, Kelly criterion, semi-variance or maximum acceptable loss.  The download includes the complete assignment in pdf."}