Pub Date : 2019-10-25DOI: 10.1504/ijram.2019.103333
Patricia Larkin, W. Leiss, D. Krewski
Carbon capture and storage (CCS) pilot and demonstration projects began in Canada in the 1990s. This review of publicly available documentation considers the regulatory application and approval practice for four large Canadian projects that are either under construction or in operation. Results find that oversight of CCS projects is value chain specific and obtaining documentation can be challenging. However, technical risk assessment supporting approvals is moving forward, with an increasing range of chain component health and environmental risks being assessed using referenced approaches. Monitoring remains the primary risk management approach. Global risk estimation is not completed and unresolved issues about transparency in risk communication could have the potential to negatively impact broad public acceptance of CCS and therefore project viability in the long run.
{"title":"The evolution of regulatory practice for CCS projects in Canada","authors":"Patricia Larkin, W. Leiss, D. Krewski","doi":"10.1504/ijram.2019.103333","DOIUrl":"https://doi.org/10.1504/ijram.2019.103333","url":null,"abstract":"Carbon capture and storage (CCS) pilot and demonstration projects began in Canada in the 1990s. This review of publicly available documentation considers the regulatory application and approval practice for four large Canadian projects that are either under construction or in operation. Results find that oversight of CCS projects is value chain specific and obtaining documentation can be challenging. However, technical risk assessment supporting approvals is moving forward, with an increasing range of chain component health and environmental risks being assessed using referenced approaches. Monitoring remains the primary risk management approach. Global risk estimation is not completed and unresolved issues about transparency in risk communication could have the potential to negatively impact broad public acceptance of CCS and therefore project viability in the long run.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijram.2019.103333","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43970541","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-25DOI: 10.1504/ijram.2019.103331
N. Bankes
The Province of Alberta has assumed a leadership role in Canada in developing a legal and regulatory framework for encouraging the adoption of carbon capture and storage (CCS) technology. One element of that framework deals with liability issues. This paper reviews the different liability issues associated with CCS projects as well as the case for transferring liability post-closure to the government. The paper then examines how Alberta has chosen to accept a transfer of that liability and how Alberta seeks to recover at least a portion of the costs associated with that liability from the injection industry through the mechanism of the Post-Closure Stewardship Fund. Some reference is made to the European Union's CCS Directive as a point of comparison.
{"title":"Alberta's approach to the transfer of liability for carbon capture and storage projects","authors":"N. Bankes","doi":"10.1504/ijram.2019.103331","DOIUrl":"https://doi.org/10.1504/ijram.2019.103331","url":null,"abstract":"The Province of Alberta has assumed a leadership role in Canada in developing a legal and regulatory framework for encouraging the adoption of carbon capture and storage (CCS) technology. One element of that framework deals with liability issues. This paper reviews the different liability issues associated with CCS projects as well as the case for transferring liability post-closure to the government. The paper then examines how Alberta has chosen to accept a transfer of that liability and how Alberta seeks to recover at least a portion of the costs associated with that liability from the injection industry through the mechanism of the Post-Closure Stewardship Fund. Some reference is made to the European Union's CCS Directive as a point of comparison.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijram.2019.103331","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48241205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-25DOI: 10.1504/ijram.2019.103332
Patricia Larkin, W. Leiss, D. Krewski
Carbon capture and storage (CCS) is included in the list of technological processes that could reduce point source carbon dioxide emissions that contribute to climate change. For geological storage projects, global frameworks for environmental and human health risk assessment (RA) and risk management (RM) have been developed within various regional and national jurisdictions as well as by non-government organisations since the 2005 Intergovernmental Panel on Climate Change Special Report on CCS. This article provides an updated compendium of elaborated RA/RM frameworks in leading jurisdictions for CCS in the regulatory and non-regulatory contexts including online resources. Using a 3- or 4-step RA, there is an emphasis on storage site selection and characterisation; an iterative approach is recommended for RM emphasising monitoring and re-assessment; and other risk-based considerations such as communications and transparency are discussed more frequently in non-government guidance. Comprehensive risk estimation is not yet promoted.
{"title":"Risk assessment and management frameworks for carbon capture and geological storage: a global perspective","authors":"Patricia Larkin, W. Leiss, D. Krewski","doi":"10.1504/ijram.2019.103332","DOIUrl":"https://doi.org/10.1504/ijram.2019.103332","url":null,"abstract":"Carbon capture and storage (CCS) is included in the list of technological processes that could reduce point source carbon dioxide emissions that contribute to climate change. For geological storage projects, global frameworks for environmental and human health risk assessment (RA) and risk management (RM) have been developed within various regional and national jurisdictions as well as by non-government organisations since the 2005 Intergovernmental Panel on Climate Change Special Report on CCS. This article provides an updated compendium of elaborated RA/RM frameworks in leading jurisdictions for CCS in the regulatory and non-regulatory contexts including online resources. Using a 3- or 4-step RA, there is an emphasis on storage site selection and characterisation; an iterative approach is recommended for RM emphasising monitoring and re-assessment; and other risk-based considerations such as communications and transparency are discussed more frequently in non-government guidance. Comprehensive risk estimation is not yet promoted.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijram.2019.103332","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45200013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-25DOI: 10.1504/ijram.2019.103337
A. Heyes, B. Urban
Carbon capture and storage has received a lot of attention in recent years due to its attractiveness as a potential solution for climate stabilisation. Since it is based on a suite of mature, well known technologies, most of the cost reductions have already occurred. Recently adopted social cost of carbon figures to advise policies in the USA and Canada currently point towards lower benefits than costs from carbon capture and storage, but not always by a wide margin. It is difficult to make a case for large-scale deployment under these conditions, but they are subject to change as strands of the economic literature support significantly higher social cost of carbon estimates and upcoming commercial applications of carbon capture and storage to power generation may prove economically viable.
{"title":"The economic evaluation of the benefits and costs of carbon capture and storage","authors":"A. Heyes, B. Urban","doi":"10.1504/ijram.2019.103337","DOIUrl":"https://doi.org/10.1504/ijram.2019.103337","url":null,"abstract":"Carbon capture and storage has received a lot of attention in recent years due to its attractiveness as a potential solution for climate stabilisation. Since it is based on a suite of mature, well known technologies, most of the cost reductions have already occurred. Recently adopted social cost of carbon figures to advise policies in the USA and Canada currently point towards lower benefits than costs from carbon capture and storage, but not always by a wide margin. It is difficult to make a case for large-scale deployment under these conditions, but they are subject to change as strands of the economic literature support significantly higher social cost of carbon estimates and upcoming commercial applications of carbon capture and storage to power generation may prove economically viable.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijram.2019.103337","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41722887","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-25DOI: 10.1504/ijram.2019.103339
W. Leiss, Patricia Larkin
This paper posits that an important goal of public engagement for carbon capture and storage (CCS) projects as being public and social acceptance for those projects. It argues that acceptability is the end of a long, logical chain of social interactions, which ideally starts with: 1) the public perception of the risks and benefits associated with CCS; moves through 2) effective communication of risks and benefits by project proponents; 3) involves robust and credible measures for public engagement; 4) results in authoritative decision processes that transparently reflect the results of engagement. Each of these components of acceptability is described with respect to both actual experience with CCS projects to date and the relevant literature. Conclusions point to the special importance of full transparency and public understanding of credible risk assessments for these projects.
{"title":"Risk communication and public engagement in CCS projects: the foundations of public acceptability","authors":"W. Leiss, Patricia Larkin","doi":"10.1504/ijram.2019.103339","DOIUrl":"https://doi.org/10.1504/ijram.2019.103339","url":null,"abstract":"This paper posits that an important goal of public engagement for carbon capture and storage (CCS) projects as being public and social acceptance for those projects. It argues that acceptability is the end of a long, logical chain of social interactions, which ideally starts with: 1) the public perception of the risks and benefits associated with CCS; moves through 2) effective communication of risks and benefits by project proponents; 3) involves robust and credible measures for public engagement; 4) results in authoritative decision processes that transparently reflect the results of engagement. Each of these components of acceptability is described with respect to both actual experience with CCS projects to date and the relevant literature. Conclusions point to the special importance of full transparency and public understanding of credible risk assessments for these projects.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijram.2019.103339","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48082828","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-19DOI: 10.1504/IJRAM.2019.101292
N. Cashman, M. Tyshenko, R. Cheung, W. Aspinall, Michelle Wong, D. Krewski
The detection of prion protein in widely used urine-derived fertility drugs has raised the possibility that prions from urine donors with (asymptomatic) prion disease could be present in these drugs. A high level of uncertainty exists regarding this issue. An international expert panel provided judgments related to prion disease transmission through fertility drug use in a structured expert elicitation. The elicitation gauged expert judgements about the uncertainty surrounding potential prion disease risks associated with urine-derived fertility drugs and emphasised the scientific ambiguity surrounding disease transmission risk factors associated with urine-derived fertility drugs. Group aggregated responses indicate that the theoretical risk of prion disease transmission with urine-derived fertility drugs was judged to be very low. The experts judged recombinant fertility drugs produced with bovine serum to possess 10-fold lower risk compared to urine-derived fertility drugs. Fertility drugs made without fetal bovine serum were judged to present a risk approximately 1,200 times lower compared to urine-derived counterparts. This elicitation indicates recombinant fertility drugs carry relatively less risk than urine-derived fertility drugs. However, the associated uncertainties are significant and pro-active surveillance of possible new routes of transmission of human prion disease warrants consideration of new scientific data as it becomes available.
{"title":"Prion disease risk uncertainties associated with urine-derived and recombinant fertility drugs","authors":"N. Cashman, M. Tyshenko, R. Cheung, W. Aspinall, Michelle Wong, D. Krewski","doi":"10.1504/IJRAM.2019.101292","DOIUrl":"https://doi.org/10.1504/IJRAM.2019.101292","url":null,"abstract":"The detection of prion protein in widely used urine-derived fertility drugs has raised the possibility that prions from urine donors with (asymptomatic) prion disease could be present in these drugs. A high level of uncertainty exists regarding this issue. An international expert panel provided judgments related to prion disease transmission through fertility drug use in a structured expert elicitation. The elicitation gauged expert judgements about the uncertainty surrounding potential prion disease risks associated with urine-derived fertility drugs and emphasised the scientific ambiguity surrounding disease transmission risk factors associated with urine-derived fertility drugs. Group aggregated responses indicate that the theoretical risk of prion disease transmission with urine-derived fertility drugs was judged to be very low. The experts judged recombinant fertility drugs produced with bovine serum to possess 10-fold lower risk compared to urine-derived fertility drugs. Fertility drugs made without fetal bovine serum were judged to present a risk approximately 1,200 times lower compared to urine-derived counterparts. This elicitation indicates recombinant fertility drugs carry relatively less risk than urine-derived fertility drugs. However, the associated uncertainties are significant and pro-active surveillance of possible new routes of transmission of human prion disease warrants consideration of new scientific data as it becomes available.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRAM.2019.101292","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47184927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-15DOI: 10.1504/IJRAM.2019.101272
M. Grant, M. Stewart
Postal improvised explosive devices (IEDs) provide criminals and terrorists with a convenient mechanism for delivering an energetic payload to an intended victim with little operational risk. Postal IEDs formed 7% of IED attacks reported in the West between 1998-2015, are often dispatched in groups and can bring postal systems to a standstill. Nearly 30% of postal IED explosions occur in the postal worker environment and a third of the casualties caused by postal IEDs are postal workers. Postal IEDs are debatably a reasonably foreseeable cause of harm to postal workers and should be considered under the work health and safety (WHS) constructs of many Western nations. This paper considers this problem, using a probabilistic risk assessment model to inform a cost-benefit analysis considering potential risk reduction options for postal workers. It identifies that the control measures identified were not cost-effective where only the direct WHS costs pertaining to unintentional postal IED detonation within the mail delivery system were considered given the risk levels identified.
{"title":"Postal IEDs and risk assessment of work health and safety considerations for postal workers","authors":"M. Grant, M. Stewart","doi":"10.1504/IJRAM.2019.101272","DOIUrl":"https://doi.org/10.1504/IJRAM.2019.101272","url":null,"abstract":"Postal improvised explosive devices (IEDs) provide criminals and terrorists with a convenient mechanism for delivering an energetic payload to an intended victim with little operational risk. Postal IEDs formed 7% of IED attacks reported in the West between 1998-2015, are often dispatched in groups and can bring postal systems to a standstill. Nearly 30% of postal IED explosions occur in the postal worker environment and a third of the casualties caused by postal IEDs are postal workers. Postal IEDs are debatably a reasonably foreseeable cause of harm to postal workers and should be considered under the work health and safety (WHS) constructs of many Western nations. This paper considers this problem, using a probabilistic risk assessment model to inform a cost-benefit analysis considering potential risk reduction options for postal workers. It identifies that the control measures identified were not cost-effective where only the direct WHS costs pertaining to unintentional postal IED detonation within the mail delivery system were considered given the risk levels identified.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRAM.2019.101272","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44743324","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-15DOI: 10.1504/IJRAM.2019.10022669
S. Mai, Vatthanaly Siphada, Jianqiong Wang, Vinath Mekthanavanh, H. Hlaing, Pheng Sokliep
Many hydropower projects in the developing countries of Asia have currently adopted the project delivery method of engineering, procurement and construction (EPC). However, the EPC general contractors are facing many difficulties, resulting in schedule delays and considerable cost overrun. The purpose of this research is to evaluate the risks causing schedule delays of EPC hydropower projects in the developing countries of Asia. The study analysis and assessment of risks is based on survey questionnaires, which achieved the follow findings: (1) there are 21 main risks influencing on schedule delays; (2) scientifically rank the influence of every single risk on schedule delays; (3) provide a recommendation that could reduce or eliminate these risks on schedule delay of EPC hydropower projects. This study provides a valuable reference which helps investors and contractors finish on schedule to ensure the benefits when building EPC hydropower projects in the developing countries of Asia.
{"title":"Evaluating and classifying the impact of individual risk on the delayed EPC hydropower projects in the developing countries of Asia","authors":"S. Mai, Vatthanaly Siphada, Jianqiong Wang, Vinath Mekthanavanh, H. Hlaing, Pheng Sokliep","doi":"10.1504/IJRAM.2019.10022669","DOIUrl":"https://doi.org/10.1504/IJRAM.2019.10022669","url":null,"abstract":"Many hydropower projects in the developing countries of Asia have currently adopted the project delivery method of engineering, procurement and construction (EPC). However, the EPC general contractors are facing many difficulties, resulting in schedule delays and considerable cost overrun. The purpose of this research is to evaluate the risks causing schedule delays of EPC hydropower projects in the developing countries of Asia. The study analysis and assessment of risks is based on survey questionnaires, which achieved the follow findings: (1) there are 21 main risks influencing on schedule delays; (2) scientifically rank the influence of every single risk on schedule delays; (3) provide a recommendation that could reduce or eliminate these risks on schedule delay of EPC hydropower projects. This study provides a valuable reference which helps investors and contractors finish on schedule to ensure the benefits when building EPC hydropower projects in the developing countries of Asia.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42147416","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-15DOI: 10.1504/IJRAM.2019.101271
R. Mutti, F. Montali, A. Ferrari, A. Nouvenne, F. Lauretani, G. Campaniello, C. Marchesi
Very few studies have shown the relation between psychiatric morbidity and hospital care safety. Some studies emphasise the importance of proper management of care safety for patients treated in psychiatric settings. Therefore, it is of great importance to deeply analyse the psychiatric morbidity impact on the safety of patient care in non-psychiatric settings. A cross-sectional study has been carried out, based on a simple random sample of N = 941 psychiatric consultations collected over a three-year period (2012-014) representative of N = 4548, sent to the intensive psychiatric hospital service by the wards of a university hospital. Demographic characteristics and psychiatric morbidity of hospital inpatients are associated with the four main outcomes/events due to the patients' active participation in the care processes (patient fall, patients' departure, suicide attempt or self-harm and acts of violence against professionals).
{"title":"Psychiatric morbidity as a risk factor for hospital inpatients' safety: a cross-sectional study","authors":"R. Mutti, F. Montali, A. Ferrari, A. Nouvenne, F. Lauretani, G. Campaniello, C. Marchesi","doi":"10.1504/IJRAM.2019.101271","DOIUrl":"https://doi.org/10.1504/IJRAM.2019.101271","url":null,"abstract":"Very few studies have shown the relation between psychiatric morbidity and hospital care safety. Some studies emphasise the importance of proper management of care safety for patients treated in psychiatric settings. Therefore, it is of great importance to deeply analyse the psychiatric morbidity impact on the safety of patient care in non-psychiatric settings. A cross-sectional study has been carried out, based on a simple random sample of N = 941 psychiatric consultations collected over a three-year period (2012-014) representative of N = 4548, sent to the intensive psychiatric hospital service by the wards of a university hospital. Demographic characteristics and psychiatric morbidity of hospital inpatients are associated with the four main outcomes/events due to the patients' active participation in the care processes (patient fall, patients' departure, suicide attempt or self-harm and acts of violence against professionals).","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41463406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-15DOI: 10.1504/IJRAM.2019.10022680
Agim Kukeli, F. Deari, C. Rocsoreanu
The purpose of this paper is to illustrate, at least pedagogically, composition of an efficient portfolio. Principally, two scenarios are examined. In the first we intend to minimise the portfolio variance and achieve a desired level of return. To do so, we find the optimal weights using Lagrange multiplier method. Short sales of securities are allowed. This implies that negative weights can be found. In the second case, we obtain the optimal portfolio composition, considering that weights cannot be negative. This suggests that short sales of securities are not allowed, and the Kuhn-Tucker system is used. Results are examined in the light of the investor's risk tolerance, and reveal that an investor who chooses an aggressive investment is focused more on return rather than risk. Conversely, when the investor's risk tolerance decreased, funds were invested more in stocks with both lower return and risk.
{"title":"Portfolio composition and critical line: a methodological approach","authors":"Agim Kukeli, F. Deari, C. Rocsoreanu","doi":"10.1504/IJRAM.2019.10022680","DOIUrl":"https://doi.org/10.1504/IJRAM.2019.10022680","url":null,"abstract":"The purpose of this paper is to illustrate, at least pedagogically, composition of an efficient portfolio. Principally, two scenarios are examined. In the first we intend to minimise the portfolio variance and achieve a desired level of return. To do so, we find the optimal weights using Lagrange multiplier method. Short sales of securities are allowed. This implies that negative weights can be found. In the second case, we obtain the optimal portfolio composition, considering that weights cannot be negative. This suggests that short sales of securities are not allowed, and the Kuhn-Tucker system is used. Results are examined in the light of the investor's risk tolerance, and reveal that an investor who chooses an aggressive investment is focused more on return rather than risk. Conversely, when the investor's risk tolerance decreased, funds were invested more in stocks with both lower return and risk.","PeriodicalId":35420,"journal":{"name":"International Journal of Risk Assessment and Management","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48698937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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