Investment portfolio selection

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Reexamination Certificate

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C705S037000

Reexamination Certificate

active

06912509

ABSTRACT:
A system for and method of investing a lump sum amount in order to return N periodic installments at a specified confidence level. A set of candidate investment instruments is selected from a universe of investment instruments. Data regarding the returns of the candidate investment vehicles during preceding periods is collected. Based on the data, minimum expected returns at the confidence level (MER) from each investment vehicle at the return date of each installment is compiled. Investment vehicles are selected for each of the N periods, with the selection criteria maximizing the MER for each of the respective periods. A normalization factor is developed that is based on the MERs of the selected investment vehicles, for the associated respective periods. An amount is allocated to each selected investment vehicle, and the allocated amount is established in accordance with a respective investment factor attributed to each investment vehicle, where the investment factor is based on the MER of the investment vehicle at a corresponding installment date.

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patent: WO 95/06290 (1995-03-01), None
Cavaletti, “Where to turn for risk management software”, Futures, v26 n4 p60(2) Apr. 1997, Dialog file 256, Accession No. 00102372.
<<Active Management>> Thomas, Lee R., III, Journal of Portfolio Management, v26, Issue 2, pp25-342, Year 2000.

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