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We provide analytical results for a static portfolio optimization problem with two coherent risk measures. The use of two risk measures is motivated by joint decision-making for portfolio selection where the risk perception of the portfolio…

Portfolio Management · Quantitative Finance 2021-01-19 Tahsin Deniz Aktürk , Çağın Ararat

The optimization of large portfolios displays an inherent instability to estimation error. This poses a fundamental problem, because solutions that are not stable under sample fluctuations may look optimal for a given sample, but are, in…

Portfolio Management · Quantitative Finance 2015-05-14 Susanne Still , Imre Kondor

This paper considers a robust time-consistent mean-variance-skewness portfolio selection problem for an ambiguity-averse investor by taking into account wealth-dependent risk aversion and wealth-dependent skewness preference as well as…

Optimization and Control · Mathematics 2022-01-19 Jian-hao Kang , Nan-jing Huang , Zhihao Hu , Ben-Zhang Yang

The classical dynamic programming-based optimal stochastic control methods fail to cope with nonseparable dynamic optimization problems as the principle of optimality no longer applies in such situations. Among these notorious nonseparable…

Portfolio Management · Quantitative Finance 2013-03-06 Xiangyu Cui , Xun Li , Duan Li

This paper studies a type of periodic utility maximization for portfolio management in an incomplete market model, where the underlying price diffusion process depends on some external stochastic factors. The portfolio performance is…

Portfolio Management · Quantitative Finance 2024-01-29 Wenyuan Wang , Kaixin Yan , Xiang Yu

This survey reviews portfolio choice in settings where investment opportunities are stochastic due to, e.g., stochastic volatility or return predictability. It is explained how to heuristically compute candidate optimal portfolios using…

Portfolio Management · Quantitative Finance 2013-11-08 Ren Liu , Johannes Muhle-Karbe

This is a companion paper of [Mixed equilibrium solution of time-inconsistent stochastic LQ problem, arXiv:1802.03032], where general theory has been established to characterize the open-loop equilibrium control, feedback equilibrium…

Optimization and Control · Mathematics 2018-03-26 Yuan-Hua Ni , Xun Li , Ji-Feng Zhang , Miroslav Krstic

Inequalities may appear in many models. They can be as simple as assuming a parameter is nonnegative, possibly a regression coefficient or a treatment effect. This paper focuses on the case that there is only one inequality and proposes a…

Econometrics · Economics 2024-09-17 Gregory Fletcher Cox

In many statistical problems, several estimators are usually available for interval estimation of a parameter of interest, and hence, the selection of an appropriate estimator is important. The criterion for a good estimator is to have a…

Methodology · Statistics 2018-10-10 Richard Minkah , Tertius de Wet

The interval scheduling problem is one variant of the scheduling problem. In this paper, we propose a novel variant of the interval scheduling problem, whose definition is as follows: given jobs are specified by their {\em release times},…

Data Structures and Algorithms · Computer Science 2018-05-16 Koji M. Kobayashi

We address a specific but recurring problem related to sampled linear systems. In particular, we provide a numerical method for the rigorous verification of constraint satisfaction for linear continuous-time systems between sampling…

Optimization and Control · Mathematics 2016-03-30 Moritz Schulze Darup

Nowadays, reaching a high level of employee satisfaction in efficient schedules is an important and difficult task faced by companies. We tackle a new variant of the personnel scheduling problem under unknown demand by considering employee…

Optimization and Control · Mathematics 2025-04-01 Carl Perreault-Lafleur , Margarida Carvalho , Guy Desaulniers

This work derives an approximate analytical single period solution of the portfolio choice problem for the power utility function. It is possible to do so if we consider that the asset returns follow a multivariate normal distribution. It…

Portfolio Management · Quantitative Finance 2021-10-13 Dmytro Ivasiuk

We employ model predictive control for a multi-period portfolio optimization problem. In addition to the mean-variance objective, we construct a portfolio whose allocation is given by model predictive control with a risk-parity objective,…

Portfolio Management · Quantitative Finance 2021-03-22 Xiaoyue Li , A. Sinem Uysal , John M. Mulvey

The paper solves the problem of optimal portfolio choice when the parameters of the asset returns distribution, like the mean vector and the covariance matrix are unknown and have to be estimated by using historical data of the asset…

Statistical Finance · Quantitative Finance 2023-04-19 David Bauder , Taras Bodnar , Nestor Parolya , Wolfgang Schmid

In this paper we develop a unified approach for solving a wide class of sequential selection problems. This class includes, but is not limited to, selection problems with no-information, rank-dependent rewards, and considers both fixed as…

Probability · Mathematics 2020-01-27 Alexander Goldenshluger , Yaakov Malinovsky , Assaf Zeevi

We propose an iterative gradient-based algorithm to efficiently solve the portfolio selection problem with multiple spectral risk constraints. Since the conditional value at risk (CVaR) is a special case of the spectral risk measure, our…

Portfolio Management · Quantitative Finance 2015-03-26 Carlos Abad , Garud Iyengar

In this paper, we consider the solution of ill-conditioned systems of linear algebraic equations that can be determined imprecisely. To improve the stability of the solution process, we "immerse" the original imprecise linear system in an…

Numerical Analysis · Mathematics 2018-10-04 Sergey P. Shary

This paper considers the portfolio management problem of optimal investment, consumption and life insurance. We are concerned with time inconsistency of optimal strategies. Natural assumptions, like different discount rates for consumption…

Optimization and Control · Mathematics 2011-07-25 Ivar Ekeland , Oumar Mbodji , Traian A. Pirvu

We consider the problem of selecting the best variable-value strategy for solving a given problem in constraint programming. We show that the recent Embarrassingly Parallel Search method (EPS) can be used for this purpose. EPS proposes to…

Artificial Intelligence · Computer Science 2016-04-25 Anthony Palmieri , Jean-Charles Régin , Pierre Schaus