Finding outliers... Or a Ponzi scheme
Question: can a Logarithmic Curve or Square Root Curve be used to detect and eliminate Ponzi schemes (Efficient Frontier has a clear shape)?
Most likely it would be a logarithmic curve if we’re detecting Ponzi schemes. That is the typical shape of the efficient frontier. Mainly we’re just looking for outliers. Any outliers of the curve are investments we should view with more scrutiny.
Question: can a Logarithmic Curve or Square Root Curve be used to detect and eliminate Ponzi schemes (Efficient Frontier has a clear shape)?
Most likely it would be a logarithmic curve if we’re detecting Ponzi schemes. That is the typical shape of the efficient frontier. Mainly we’re just looking for outliers. Any outliers of the curve are investments we should view with more scrutiny.