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Comment: Natural Behavior Toward Risk and the Question of Value Determination

Journal of Financial and Quantitative Analysis 1973 8(2), 357
Professor Huntsman's paper is a welcome addition to the growing literature on portfolio theory. Traditional mean-variance analysis, in spite of its obvious simplicity and its ability to explain portfolio diversification, has come under increasing attack, both for the theoretical weaknesses underlying the technique and for its failure to recognize that investors manifestly prefer returns that are positively skewed to those that are not.