60http://arthurcoyne.comFri, 30 Jul 2010 19:45:07 GMTFri, 30 Jul 2010 19:45:07 GMTen arthur@arthurcoyne.comnohttp://arthurcoyne.com/2007/11/09/new-research-tool-mean-variance-optimizer-with-hedonic-adjustment.aspx?ref=rssArthur Coyne/images/86273-75427/HedonicFrontier.jpg" align="left" border="0"> The Mean Variance Optimizer with Hedonic Adjustment.xls workbook is now available. The workbook has two main worksheets:1) Optimize - a traditional mean-variance optimizer (MVO). This spreadsheet calculates an "efficient frontier" of portfolios that serves as a starting point for the hedonic adjustment process.2) Hedonic Adjustment - Adjusts MVO output to reflect the unequal "pain-to-pleasure" of losses versus gains, given an investor's degree of loss aversion at a specified target level of return. Applies the methodology outlined in The Hedonically Adjusted Efficient Frontier, using a total sample size of 10,000 outcomes.By downloading Mean Variance Optimizer with ...Investmentshttp://arthurcoyne.com/2007/11/09/new-research-tool-mean-variance-optimizer-with-hedonic-adjustment.aspx#Commentsed706715-4f80-4514-be5b-74e4bf423e8aFri, 09 Nov 2007 19:47:00 GMThttp://arthurcoyne.com/2007/10/21/the-hedonically-adjusted-efficient-frontier.aspx?ref=rssArthur CoyneAbstract Does the pain of a dollar lost outweigh the pleasure of a dollar gained? Many real-world investors believe it does. This article explores the utility of loss aversion and introduces the concept of hedonically adjusted return, a metric that expresses the utility of a risky investment in terms of the risk-free rate of return for which an investor would be willing to exchange the risky investment with indifference, given the investor's degree of loss aversion and target return. Hedonically adjusted return can ...Investmentshttp://arthurcoyne.com/2007/10/21/the-hedonically-adjusted-efficient-frontier.aspx#Comments50656c7c-00f9-41f5-a4c7-f2f6020673c8Sun, 21 Oct 2007 21:35:00 GMT