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On coherency and other properties of MAXVAR

Mathematical Finance 2018-02-28 v2

Abstract

This paper is concerned with the MAXVAR risk measure on L^2 space. We present an elementary and direct proof of its coherency and averseness. Based on the observation that the MAXVAR measure is a continuous convex combination of the CVaR measure, we provide an explicit formula for the risk envelope of MAXVAR.

Keywords

Cite

@article{arxiv.1703.10981,
  title  = {On coherency and other properties of MAXVAR},
  author = {Jie Sun and Qiang Yao},
  journal= {arXiv preprint arXiv:1703.10981},
  year   = {2018}
}

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10 pages