Accordingly, there is not a single [[sigma].sub.A], for which the capital requirements induce the insurer to select an inefficient portfolio over the corresponding efficient one.
Consequently, the insurer is forced to select the inefficient portfolio in the short run.
Furthermore, we systematically select inefficient portfolios and assess their admissibility, too.
Below we calculate the market risk capital requirements for a systematically selected batch of inefficient portfolios and assess their admissibility, too.
Third, efficient portfolios are not systematically preferred to inefficient portfolios, meaning that some companies may need to expose themselves to a higher than necessary degree of market risk to earn their costs of capital.
Arnott and Wagner  find that ignoring transaction costs often results in an inefficient portfolio
On the other hand, for an SSD inefficient portfolio with respect to [W.sub.M], the Kuosmanen necessary test (7) identifies a dominating portfolio by solving asymptotically two-times smaller linear program than the Kopa-Chovanec test.
For SSD inefficient portfolios, several SSD portfolio inefficiency measures were introduced in ,  and .
The company firmly believes that the most economical way of adding new electricity generation capacity is by repowering the aging and inefficient portfolio
of existing power plants and by moving to gas power generation and renewable energy.
And the managers who were invested the most in their home states ended up with the most inefficient portfolios
. While the hometown investments didn't necessarily underperform, the overweighting can lead to a portfolio that is poorly diversified, and too susceptible to economic problems affecting a single geographic area.
Improperly chosen risk weights induce banks to select inefficient portfolios
and to undertake regulatory arbitrage activities.