When does ‘All Eggs in One Risky Basket’ Make Sense?

In an important paper comparing expected utility and mean-variance analysis, Feldstein (1969) examined a simple portfolio problem involving just two assets, one riskless and one risky. He concluded there could easily be ‘plunging’, that is, investment in the risky asset alone. His background assumptions were that the risky asset’s yield was log normally distributed and that the investor’s attitude to risk was expressible by a logarithmic utility. We look at how conclusions are affected by choice of distribution and utility function. While conclusions can depend on choice of distribution, they are remarkably robust to choice within the range of plausible positive distributions. In contrast, conclusions are sensitive to choice of utility function and we find the key determinant to be how much the investor’s relative risk aversion differs from unity and in what direction. Based on historical stock market returns, our analysis implies that the prevalence of diversification that is observed is consistent with a relative risk aversion coefficient of about 2.5.

Electron scattering and transport in liquid argon

The transport of excess electrons in liquid argon driven out of equilibrium by an applied electric field is revisited using a multi-term solution of Boltzmann's equation together with ab initio liquid phase cross-sections calculated using the Dirac-Fock scattering equations. The calculation of liquid phase cross-sections extends previous treatments to consider multipole polarisabilities and a non-local treatment of exchange while the accuracy of the electron-argon potential is validated through comparison of the calculated gas phase cross-section with experiment. The results presented highlight the inadequacy of local treatments of exchange that are commonly used in liquid and cluster phase cross-section calculations. The multi-term Boltzmann equation framework accounting for coherent scattering enables the inclusion of the full anisotropy in the differential cross-section arising from the interaction and the structure factor, without an a priori assumption of quasi-isotropy in the velocity distribution function. The model, which contains no free parameters and accounts for both coherent scattering and liquid phase screening effects, was found to reproduce well the experimental drift velocities and characteristic energies.Comment: 32 pages, 16 figures; minor corrections, added 1 figur

Registration of retinal images from Public Health by minimising an error between vessels using an affine model with radial distortions

In order to estimate a registration model of eye fundus images made of an affinity and two radial distortions, we introduce an estimation criterion based on an error between the vessels. In [1], we estimated this model by minimising the error between characteristics points. In this paper, the detected vessels are selected using the circle and ellipse equations of the overlap area boundaries deduced from our model. Our method successfully registers 96 % of the 271 pairs in a Public Health dataset acquired mostly with different cameras. This is better than our previous method [1] and better than three other state-of-the-art methods. On a publicly available dataset, ours still better register the images than the reference method

Hardware and software status of QCDOC

QCDOC is a massively parallel supercomputer whose processing nodes are based on an application-specific integrated circuit (ASIC). This ASIC was custom-designed so that crucial lattice QCD kernels achieve an overall sustained performance of 50% on machines with several 10,000 nodes. This strong scalability, together with low power consumption and a price/performance ratio of $1 per sustained MFlops, enable QCDOC to attack the most demanding lattice QCD problems. The first ASICs became available in June of 2003, and the testing performed so far has shown all systems functioning according to specification. We review the hardware and software status of QCDOC and present performance figures obtained in real hardware as well as in simulation.Comment: Lattice2003(machine), 6 pages, 5 figure

The IRAS 1-Jy Survey of Ultraluminous Infrared Galaxies: I. The sample and Luminosity Function

A complete flux-limited sample of 118 ultraluminous infrared galaxies (ULIGs) has been identified from the IRAS Faint Source Catalog (FSC). The selection criteria were a 60 micron flux density greater than 1 Jy in a region of the sky delta > -40 deg, |b| > 30 deg. All sources were subsequently reprocessed using coadded IRAS maps in order to obtain the best available flux estimates in all four IRAS wavelength bands. The maximum observed infrared luminosity is L_ir = 10^{12.90} L_{sun}, and the maximum redshift is z = 0.268. The luminosity function for ULIGs over the decade luminosity range L_ir = 10^{12} - 10^{13} L_{sun} can be approximated by a power law Phi (L) ~= L^{-2.35} Mpc^{-3} mag^{-1}. In the local Universe z < 0.1, the space density of ULIGs appears to be comparable to or slightly larger than that of optically selected QSOs at comparable bolometric luminosities. A maximum likelihood test suggests strong evolution for our sample; assuming density evolution proportional to (1+z)^{alpha} we find alpha = 7.6+/-3.2. Examination of the two-point correlation function shows a barely significant level of clustering, xi (r) = 1.6 +/- 1.2, on size scales r ~= 22 h^{-1} Mpc.Comment: 18 pages of text, 10 pages of figures 1 to 6, 6 pages of tables 1 to 3, ApJS accepte

The Fall of the Quasar Population

We derive quantitative predictions of the optical and X-ray luminosity functions (LF) for QSs in the redshift range $z<3$. Based on BH paradigm, we investigate how the accretion is controlled by the surrounding structures, as these grow hierarchically. We argue that for $z < 3$ efficient black hole fueling is triggered by the encounters of a gas-rich host with its companions in a group. The dispersion of the dynamical parameters in the encounters produces a double power-law LF. Strong luminosity evolution (LE) is produced as these encounters deplete the gas supply in the host; an additional, milder density evolution obtains since the interactions become progressively rarer as the groups grow richer but less dense. From the agreement with the optical and the X-ray data, we conclude that the evolution of the bright quasars is articulated in two ways. Earlier than $z~3$ the gas-rich protogalaxies grow by merging, which also induces parallel growth of central holes accreting at Eddington rates. In the later era of group assemblage the host encounters with companions drive onto already existing holes further but meager accretion; these consume the gas in the hosts, and cause supply-limited emissions which are intermittent, go progressively sub-Eddington and peter out. Then other fueling processes come to the foreground; we discuss the faint emissions, especially noticeable in X-rays, which are expected when hosts in the field cannibalize satellite galaxies with their meager gas contents.Comment: 12 pages Latex + 3 EPS figures, ApJ in press, we have corrected the previous printing problems with the style \ca