Evidence on the "Growth-Optimum" Model

Abstract

A portfolio owner may hope to maximize the long run growth rate of his real wealth. In 1959, Latane suggested maximum growth as an operational criterion for portfolio selection, contending that its (possible) suboptimality on theoretical grounds was practically unimportant and emphasizing Roy's [1952] warning that "A man who seeks advice about his actions will not be grateful for the suggestion that he maximize expected utility."

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