English

Quasi-Logconvex Measures of Risk

Risk Management 2022-08-17 v1 Probability

Abstract

This paper introduces and fully characterizes the novel class of quasi-logconvex measures of risk, to stand on equal footing with the rich class of quasi-convex measures of risk. Quasi-logconvex risk measures naturally generalize logconvex return risk measures, just like quasi-convex risk measures generalize convex monetary risk measures. We establish their dual representation and analyze their taxonomy in a few (sub)classification results. Furthermore, we characterize quasi-logconvex risk measures in terms of properties of families of acceptance sets and provide their law-invariant representation. Examples and applications to portfolio choice and capital allocation are also discussed.

Keywords

Cite

@article{arxiv.2208.07694,
  title  = {Quasi-Logconvex Measures of Risk},
  author = {Roger J. A. Laeven and Emanuela Rosazza Gianin},
  journal= {arXiv preprint arXiv:2208.07694},
  year   = {2022}
}