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Statistically Optimal Strategy Analysis of a Competing Portfolio Market with a Polyvariant Profit Function

Portfolio Management 2010-05-18 v1 Probability Methodology

Abstract

A competing market model with a polyvariant profit function that assumes "zeitnot" stock behavior of clients is formulated within the banking portfolio medium and then analyzed from the perspective of devising optimal strategies. An associated Markov process method for finding an optimal choice strategy for monovariant and bivariant profit functions is developed. Under certain conditions on the bank "promotional" parameter with respect to the "fee" for a missed share package transaction and at an asymptotically large enough portfolio volume, universal transcendental equations - determining the optimal share package choice among competing strategies with monovariant and bivariant profit functions - are obtained.

Keywords

Cite

@article{arxiv.1005.2661,
  title  = {Statistically Optimal Strategy Analysis of a Competing Portfolio Market with a Polyvariant Profit Function},
  author = {Bohdan Yu. Kyshakevych and Anatoliy K. Prykarpatsky and Denis Blackmore and Ivan P. Tverdokhlib},
  journal= {arXiv preprint arXiv:1005.2661},
  year   = {2010}
}

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22 pages