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Portfolio selection problems that optimize expected utility are usually difficult to solve. If the number of assets in the portfolio is large, such expected utility maximization problems become even harder to solve numerically. Therefore,…

Portfolio Management · Quantitative Finance 2026-02-17 Nuerxiati Abudurexiti , Erhan Bayraktar , Takaki Hayashi , Hasanjan Sayit

In this paper we apply a heuristic method based on artificial neural networks in order to trace out the efficient frontier associated to the portfolio selection problem. We consider a generalization of the standard Markowitz mean-variance…

Neural and Evolutionary Computing · Computer Science 2007-07-30 Alberto Fernandez , Sergio Gomez

To improve the efficient frontier of the classical mean-variance model in continuous time, we propose a varying terminal time mean-variance model with a constraint on the mean value of the portfolio asset, which moves with the varying…

Optimization and Control · Mathematics 2020-01-14 Shuzhen Yang

We address the Merton problem of maximizing the expected utility of terminal wealth using techniques from variational analysis. Under a general continuous semimartingale market model with stochastic parameters, we obtain a characterization…

Portfolio Management · Quantitative Finance 2020-03-20 Ali Al-Aradi , Sebastian Jaimungal

In this paper, we consider the optimal portfolio liquidation problem under the dynamic mean-variance criterion and derive time-consistent solutions in three important models. We give adapted optimal strategies under a reconsidered…

Trading and Market Microstructure · Quantitative Finance 2015-11-02 Jia-Wen Gu , Mogens Steffensen

Markowitz's celebrated mean--variance portfolio optimization theory assumes that the means and covariances of the underlying asset returns are known. In practice, they are unknown and have to be estimated from historical data. Plugging the…

Applications · Statistics 2011-08-05 Tze Leung Lai , Haipeng Xing , Zehao Chen

We consider a continuous-time game-theoretic model of an investment market with short-lived assets and endogenous asset prices. The first goal of the paper is to formulate a stochastic equation which determines wealth processes of investors…

Mathematical Finance · Quantitative Finance 2020-09-01 Mikhail Zhitlukhin

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

Portfolio Management · Quantitative Finance 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

This paper studies a continuous-time market {under stochastic environment} where an agent, having specified an investment horizon and a target terminal mean return, seeks to minimize the variance of the return with multiple stocks and a…

Portfolio Management · Quantitative Finance 2013-02-28 Wan-Kai Pang , Yuan-Hua Ni , Xun Li , Ka-Fai Cedric Yiu

This paper deals with some classes of Kirchhoff type problems on a double phase setting and with nonlinear boundary conditions. Under general assumptions, we provide multiplicity results for such problems in the case when the perturbations…

Analysis of PDEs · Mathematics 2021-12-16 Alessio Fiscella , Greta Marino , Andrea Pinamonti , Simone Verzellesi

In the present paper, we derive a closed-form solution of the multi-period portfolio choice problem for a quadratic utility function with and without a riskless asset. All results are derived under weak conditions on the asset returns. No…

Portfolio Management · Quantitative Finance 2023-04-19 Taras Bodnar , Nestor Parolya , Wolfgang Schmid

This thesis investigates Merton's portfolio problem under two different rough Heston models, which have a non-Markovian structure. The motivation behind this choice of problem is due to the recent discovery and success of rough volatility…

Mathematical Finance · Quantitative Finance 2019-09-09 Benjamin James Duthie

This paper concerns the recursive utility maximization problem. We assume that the coefficients of the wealth equation and the recursive utility are concave. Then some interesting and important cases with nonlinear and nonsmooth…

Mathematical Finance · Quantitative Finance 2016-07-05 Shaolin Ji , Xiaomin Shi

This paper studies the multi-period mean-variance portfolio allocation problem with transaction costs. Many methods have been proposed these last years to challenge the famous uni-period Markowitz strategy.But these methods cannot integrate…

Portfolio Management · Quantitative Finance 2023-06-21 Areski Cousin , Jérôme Lelong , Tom Picard

Choosing a portfolio of risky assets over time that maximizes the expected return at the same time as it minimizes portfolio risk is a classical problem in Mathematical Finance and is referred to as the dynamic Markowitz problem (when the…

Mathematical Finance · Quantitative Finance 2020-01-20 Gabriela Kováčová , Birgit Rudloff

This paper explores the practical approach to portfolio selection methods for investments. The study delves into portfolio theory, discussing concepts such as expected return, variance, asset correlation, and opportunity sets. It also…

Portfolio Management · Quantitative Finance 2024-10-16 Carlos Minutti-Martinez

Motivated by the trade-off between exploitation and exploration in reinforcement learning, we study a continuous-time entropy-regularized mean variance portfolio selection problem in the presence of jumps. We propose an exploratory SDE for…

Optimization and Control · Mathematics 2025-02-26 Christian Bender , Nguyen Tran Thuan

In this paper, we search for optimal portfolio strategies in the presence of various risk measure that are common in financial applications. Particularly, we deal with the static optimization problem with respect to Value at Risk, Expected…

Portfolio Management · Quantitative Finance 2019-12-23 Alev Meral

This paper deals with numerical solutions of maximizing expected utility from terminal wealth under a non-bankruptcy constraint. The wealth process is subject to shocks produced by a general marked point process. The problem of the agent is…

Computational Finance · Quantitative Finance 2010-09-06 Mohamed Mnif

The duality between the robust (or equivalently, model independent) hedging of path dependent European options and a martingale optimal transport problem is proved. The financial market is modeled through a risky asset whose price is only…

Probability · Mathematics 2013-06-19 Yan Dolinsky , H. Mete Soner