Volume 6 Issue 1

This paper presents the theoretical and applicative model elaborated by Harry Markowitz on the determination of the structure of the efficient securities portfolio. In this sense, in order to determine the structure of the efficient Markowitz portfolio (PE), a Lagrange function is built and minimized. Also, on the basis of the results obtained from the analysis, the profitability of the portfolio is modeled continuous time and determines the range of values in which it can be found over one year after the analysis period. The data used in our analysis are shares of financial investment companies (SIF), traded on the Bucharest Stock Exchange, and the distribution used in the analysis is lognormal. The structure of the portfolio obtained through the Markowitz model can be compared to the structure of the portfolio obtained through the Sharpe model from a previous article titled ”Portfolio optimization - application of Sharpe model using Lagrange” (Brătian, 2017).

The analysis of the propensity to search under price dispersion discovers the identity of the optimal consumption-leisure choices in the model of optimal search and in the classical model of individual labor supply when the propensity to search is unimportant. However, the vigorous propensity to search, which occurs when consumers visit high-price stores, challenges the classical view on the optimal labor-leisure trade-off. The vigorous propensity to search creates the positive consumption-leisure relationship. The willingness to substitute labor by search under price dispersion also changes the understanding of the income elasticity of demand. The modest propensity to search creates normal but income inelastic demand. The income elastic demand becomes the result of the vigorous propensity to search where consumption-leisure trade-off is positive and either consumption or leisure becomes “bad”. This theoretical assumption proves the occurrence of Veblen effect as well as money illusion and creates doubts in the existence of the general equilibrium.

The research project aims to present a comparative analysis of countries related to the value of their MNCs in the global arena. The study works in secondary data analysis using as a platform the Forbes Global 2000 list, which is maybe the best source explaining the presence of MNCs by country. This research goes beyond the information provided by the original list, offering an index and information about the number of corporations per country as well as their value (number of corpora-tions per country, their position in the ranking and the weight obtained by each company expressed in numerical value). Also the index obtained has been adjusted to the population of each country to determine which one should be the expected value per country from a more realistic perspective. An analysis of cultural clus-ters and trading zones has been applied as well. Finally, a calculation of the dif-ferent sectors where MNCs operate give the index the possibility to estimate the % of penetration or importance of the services and financial sector in each country and in the world.