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ARTÍCULO
TITULO

EFFECTS OF APPLYING DIFFERENT RISK MEASURES ON THE OPTIMAL PORTFOLIO SELECTION: THE CASE OF THE BELGRADE STOCK EXCHANGE

Jelena Z. Stankovic    
Evica Petrovic    
Ksenija Dencic-Mihajlov    

Resumen

Despite its wide use in practice, Modern Portfolio Theory and Markowitz?s approach to optimization, which is based on quadratic programming and the first two moments of the probability distribution of returns as major parameters, was faced with criticism. Therefore, standard Mean-Variance approach had been modified by applying more appropriate risk measures in optimization algorithm. The aim of this paper is to indicate efficiency of these models as well as justification of their usage in managing stocks portfolio on the Belgrade Stock Exchange.

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