Dear Prof.Rutledge, dear Prof. Raynes, ..., you distinguish value creation and optimization.This distinction is important indeed, I may ask you to let me know, where this critical distinction is expanded and profounded ( literature, artcles etc). Yours sincerely, Hubert Gantz WP.u.StB. /CPA

Dear Mr. Gantz, First, let me thank you very much for your question and apologize for taking so long to respond. I will first quote from the book so that the context of your query is clear to other readers: "Optimization increases average wealth by redistributing the margins of risk and return locally; value creation  increases total wealth," Raynes & Rutledge, The Analysis of Structured Securities, OUP 2003, p. 92. Optimization is a financial rearrangement that produces more bang for the buck.

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