Multipliers in Portfolio Networks

May 28, 2016

In the portfolio network in the figure above, investment arcs have multipliers that increase or decrease the flow on each arc. This kind of portfolio network with multipliers is called a generalized network. We now have all of the components necessary to model most portfolio situations. Multipliers increase or decrease the flow on an arc. The flow of money on an investment arc is multiplied by a gain or multiplier to increase […]
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