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This work initiates research into the problem of determining an optimal investment strategy for investors with different attitudes towards the trade-offs of risk and profit. The probability distribution of the return values of the stocks…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Ming-Yang Kao , Andreas Nolte , Stephen R. Tate

We study an optimal switching problem with a state constraint: the controller is only allowed to choose strategies that keep the controlled diffusion in a closed domain. We prove that the value function associated with this problem is the…

Probability · Mathematics 2016-06-09 Idris Kharroubi

Optimal dividend strategy in dual risk model is well studied in the literatures. But to the best of our knowledge, all the previous works assumes deterministic interest rate. In this paper, we study the optimal dividends strategy in dual…

Mathematical Finance · Quantitative Finance 2017-05-24 Zailei Cheng

This paper presents the design and analysis of a Hybrid High-Order (HHO) approximation for a distributed optimal control problem governed by the Poisson equation. We propose three distinct schemes to address unconstrained control problems…

Numerical Analysis · Mathematics 2025-01-14 Gouranga Mallik , Ramesh Chandra Sau

In this paper, we focus on the problem of optimal portfolio-consumption policies in a multi-asset financial market, where the n risky assets follow Exponential Ornstein-Uhlenbeck processes, along with one risk-free bond. The investor's…

Optimization and Control · Mathematics 2025-09-10 Zhaoxiang Zhong , Haiming Song

An optimal control problem is considered for a stochastic differential equation containing a state-dependent regime switching, with a recursive cost functional. Due to the non-exponential discounting in the cost functional, the problem is…

Optimization and Control · Mathematics 2017-12-29 Hongwei Mei , Jiongmin Yong

We study an inverse problem of the stochastic optimal control of general diffusions with performance index having the quadratic penalty term of the control process. Under mild conditions on the system dynamics, the cost functions, and the…

Optimization and Control · Mathematics 2022-11-17 Yumiharu Nakano

We consider the problem of optimal multi-modes switching in finite horizon, when the state of the system, including the switching cost functions are arbitrary ($g_{ij}(t,x)\geq 0$). We show existence of the optimal strategy, and give when…

Optimization and Control · Mathematics 2015-03-18 Brahim El Asri

In this paper we consider an optimal investment and reinsurance problem with partially unknown model parameters which are allowed to be learned. The model includes multiple business lines and dependence between them. The aim is to maximize…

Optimization and Control · Mathematics 2025-10-16 Nicole Bäuerle , Gregor Leimcke

We investigate how and when to diversify capital over assets, i.e., the portfolio selection problem, from a signal processing perspective. To this end, we first construct portfolios that achieve the optimal expected growth in i.i.d.…

Portfolio Management · Quantitative Finance 2012-07-18 Sait Tunc , Mehmet A. Donmez , Suleyman S. Kozat

Optimal control problem is typically solved by first finding the value function through Hamilton-Jacobi equation (HJE) and then taking the minimizer of the Hamiltonian to obtain the control. In this work, instead of focusing on the value…

Optimization and Control · Mathematics 2021-09-10 Alain Bensoussan , Jiayue Han , Sheung Chi Phillip Yam , Xiang Zhou

A solution to the optimal problem for determining vector fields which maximize (resp. minimize) the transition probabilities from one location to another for a class of reflecting diffusion processes is obtained in the present paper. The…

Probability · Mathematics 2023-04-27 Zhongmin Qian , Xingcheng Xu

In this paper, we study two optimisation settings for an insurance company, under the constraint that the terminal surplus at a deterministic and finite time $T$ follows a normal distribution with a given mean and a given variance. In both…

Mathematical Finance · Quantitative Finance 2022-06-13 Katia Colaneri , Julia Eisenberg , Benedetta Salterini

We consider de Finetti's optimal dividends problem with absolutely continuous strategies in a spectrally negative L\'evy model with Parisian ruin as the termination time. The problem considered is essentially a generalization of both the…

Probability · Mathematics 2024-07-30 Félix Locas , Jean-François Renaud

We study the dual model with capital injection under the additional condition that the dividend strategy is absolutely continuous. We consider a refraction-reflection strategy that pays dividends at the maximal rate whenever the surplus is…

Optimization and Control · Mathematics 2016-08-24 José-Luis Pérez , Kazutoshi Yamazaki

In this paper, we study the optimal investment problem of an insurer whose surplus process follows the diffusion approximation of the classical Cramer-Lundberg model. Investment in the foreign market is allowed, and therefore, the foreign…

Portfolio Management · Quantitative Finance 2020-06-05 Qianqian Zhou , Junyi Guo

We study an optimal investment problem with multiple entries and forced exits. A closed form solution of the optimisation problem is presented for general underlying diffusion dynamics and a general running payoff function in the case when…

Probability · Mathematics 2016-10-11 Jukka Lempa

In this paper the utility optimization problem for a general insurance model is studied. The reserve process of the insurance company is described by a stochastic differential equation driven by a Brownian motion and a Poisson random…

Probability · Mathematics 2009-09-01 Yuping Liu , Jin Ma

This paper is devoted to the stochastic optimal control problem of infinite-dimensional differential systems allowing for both path-dependence and measurable randomness. As opposed to the deterministic path-dependent cases studied by…

Optimization and Control · Mathematics 2023-07-19 Jinniao Qiu , Yang Yang

In this paper, we investigate the robust optimal reinsurance,investment,and internal surplus distribution (i.e., consumption) problem for an insurer with Epstein-Zin recursive preferences in an incomplete market. It is assumed that the…

Optimization and Control · Mathematics 2026-05-19 Junyi Guo , Jianxuan Li , Qianqian Zhou