Almost Stochastic Dominance and stocks for the long run

Moshe Levy ()

European Journal of Operational Research, 2009, vol. 194, issue 1, 250-257

Abstract: The geometric-mean argument and the recently developed Almost Stochastic Dominance criterion have been employed to make the case for "stocks for the long run". We show that Almost Stochastic Dominance and the geometric-mean argument do not necessarily support long-run investment in equities. In fact, for standard preferences bonds may be preferred to stocks for the long run while stocks are preferred for shorter horizons.

Keywords: Stochastic; Dominance; Investment; horizon; Asset; allocation (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:194:y:2009:i:1:p:250-257

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