Patent ID: 7809626
Filing Date: 2010-10-05
Classification: G06Q

Abstract:
1. A method for evaluating the suitability of a set of investment assets for an individual investor, including the steps of: assessing an individual investor's risk tolerance; representing said risk tolerance in the form of two risk tolerance parameters; obtaining the individual investor's reward expectation; determining types of investment assets the individual investor wishes to consider; selecting a representation for the behavior of the considered types of investment assets; calculating statistically viable frontier values of said risk tolerance parameters and said reward expectations of the investment assets based on said selected representation; deriving values for said risk tolerance parameters and said reward expectation for a set of investment assets from said statistically viable frontier values of said risk tolerance parameters and said reward expectations of the investment assets; comparing said derived values for said risk tolerance parameters with those representing the individual investor's risk tolerance and said derived value for said reward expectation with the individual investor's reward expectation; and deciding if the set of investment assets is suitable for the individual investor.