WebCab Portfolio for .NET v5.0 Demo

AboveException Class

This is the base exception class for all other exceptions thrown by the Portfolio class.

For a list of all members of this type, see AboveException Members.

System.Object
   Exception
      AboveException

public class AboveException : Exception

Remarks

The `AboveException' exception is thrown when the investors utility function does not select an optimal portfolio from the Efficient Frontier because for all values of the expected return considered the Utility function is greater than the Efficient Frontier.

If the `AboveException' was thrown then though no optimal portfolio was selected in accordance with the investors utility function, the investor is prepared to hold any of the available portfolios because for any given value of the expected return he is prepared to accept a higher level of risk that is actually necessary.

In the case when the AboveException is thrown the follow two modifications of the problem are equally justified:

  1. Change Utility Function: Either shift the investors utility function down along the risk axis or along the expected return axis by re-setting the utility function private fields using one of SetUtilityFunctionInterp or SetUtilityFunctionPoly.Once the investors utility function has been reset this methods can be re-applied.
  2. Returns Portfolio: Return the portfolio of the Efficient Frontier which has the maximum expected return with the range considered. The rationale being that since the investor is prepared to hold any of the portfolios over the range of the expected returns for which it is considered. The assumption of the Markwotz model would lead us to believe that the investor would wish to maximise his expected return and select the portfolio with the highest expected return.

Requirements

Namespace: WebCab.Libraries.Finance.Portfolio

Assembly: WebCab.Libraries.PortfolioDemo (in WebCab.Libraries.PortfolioDemo.dll)

See Also

AboveException Members | WebCab.Libraries.Finance.Portfolio Namespace