Join Wayne Winston for an in-depth discussion in this video On financial analytics, part of Wayne Winston on Analytics.
Well, we have previously alluded…to portfolio optimization or asset allocation.…In other words, if you have money to invest,…how should you allocate that among different investment classes.…So that you get a desired expected return at minimum risk.…And Harry Markowitz was actually a mathematician, statistician, won the Nobel…prize for economics in 1990 for that development of portfolio optimization.…So, many large companies are…involved with projects like, a drug company decides…do I go ahead with the new drug.…
P & G decides do I go ahead with a new cosmetic product.…An auto company decides do I go ahead with a new car.…And you, the problem is you don't know these products will be successful.…So the science of capital budgeting involves trying to…figure out what products we should go ahead with.…So we used the simulation tool that we discussed earlier to analyze the odds a…new car will be successful.…For example, if we find there's only a 20% chance a new car will…make money for a car company, they probably shouldn't go ahead with that car.…
- What is analytics?
- Predictive vs. prescriptive analytics
- What do you need to know to become an analytic professional?
- Looking at examples of good and bad metrics
- How mobile devices will shape analytics