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The matrix rate of return

Anna Zambrzycka, Edward W. Piotrowski

physics.soc-pharXiv:physics/0607175

Abstract

In this paper we give definitions of matrix rates of return which do not depend on the choice of basis describing baskets. We give their economic interpretation. The matrix rate of return describes baskets of arbitrary type and extends portfolio analysis to the complex variable domain. This allows us for simultaneous analysis of evolution of baskets parameterized by complex variables in both continuous and discrete time models.

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