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This paper first describes the analytic approach that Markowitz used in developing his portfolio theory. Developing a game-of-life simulation is a parallel approach for modelling individual financial management. To develop a realistic simulator will require deciding what goals are essential to the family planning process, formulating optimizable subproblems, using technology to interpret and record decisions, and developing decision rules which prove robust in the model and can be implemented in practice.
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Harry M. Markowitz (1991) studied this question.
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