No wind is factored in this equation.
That kills Reykjavik.
From page:
"Next Steps:
It would be interesting to use detailed time series for each city and a utility function on temperatures (perhaps including wind chill and humidex) to determine which cities are truly mean-variance optimal."
Yep, was there in this February and while the temperature is not bad (bring hand warmers), there were multiple wind storms. One of them was so bad that you simply couldn't walk. Otherwise a wonderful city.
From page: "Next Steps: It would be interesting to use detailed time series for each city and a utility function on temperatures (perhaps including wind chill and humidex) to determine which cities are truly mean-variance optimal."