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Model uncertainty has been one prominent issue both in the theory of risk measures and in practice such as financial risk management and regulation. Motivated by this observation, in this paper, we take a new perspective to describe the…

Theoretical Economics · Economics 2025-04-14 Shuo Gong , Yijun Hu , Linxiao Wei

The Adjusted Rand Index (ARI) is a widely used method for comparing hard clusterings, but requires a choice of random model that is often left implicit. Several recent works have extended the Rand Index to fuzzy clusterings, but the…

Machine Learning · Statistics 2025-02-17 Ryan DeWolfe , Jeffery L. Andrews

We study optimal investment problem for a diffusion market consisting of a finite number of risky assets (for example, bonds, stocks and options). Risky assets evolution is described by Ito's equation, and the number of risky assets can be…

Probability · Mathematics 2008-12-02 Nikolai Dokuchaev

The paper deals with a lot sizing problem with ill-known demands modeled by fuzzy intervals whose membership functions are possibility distributions for the values of the uncertain demands. Optimization criteria, in the setting of…

Other Computer Science · Computer Science 2012-10-22 Romain Guillaume , Przemyslaw Kobylanski , Pawel Zielinski

In this paper, notion of p - norm generalized trapezoidal intuitionistic fuzzy numbers is introduced. A new ranking method is introduced for p - norm generalized trapezoidal intuitionistic fuzzy numbers. Also we consider linear programming…

Optimization and Control · Mathematics 2015-12-08 Shashi Aggarwal , Chavi Gupta

In this paper, we propose the uncertain volatility models with stochastic bounds. Like the regular uncertain volatility models, we know only that the true model lies in a family of progressively measurable and bounded processes, but instead…

Mathematical Finance · Quantitative Finance 2017-02-17 Jean-Pierre Fouque , Ning Ning

In practical situations, interval-valued fuzzy sets are frequently encountered. In this paper, firstly, we present shadowed sets for interpreting and understanding interval fuzzy sets. We also provide an analytic solution to computing the…

Artificial Intelligence · Computer Science 2014-12-23 Guangming Lang

According to recent findings [1,2], empirical covariance matrices deduced from financial return series contain such a high amount of noise that, apart from a few large eigenvalues and the corresponding eigenvectors, their structure can…

Statistical Mechanics · Physics 2009-11-07 Szilard Pafka , Imre Kondor

The main objective is to present a some variant of the Black - Litterman model. We consider the canonical case when priori return is determined by means such excess return from the CAPM market portfolio which is derived using reverse…

Mathematical Finance · Quantitative Finance 2016-01-05 Krzysztof Echaust , Krzysztof Piasecki

Risk management is very important for individual investors or companies. There are many ways to measure the risk of investment. Prices of risky assets vary rapidly and randomly due to the complexity of finance market. Random interval is a…

Portfolio Management · Quantitative Finance 2022-07-26 Jinping Zhang , Keming Zhang

A new approach for uncertainty management for fuzzy, rule based decision support systems is proposed: The domain expert's knowledge is expressed by a set of rules that frequently refer to vague and uncertain propositions. The certainty of…

Artificial Intelligence · Computer Science 2013-04-10 Christoph F. Eick

We expose a theoretical hedging optimization framework with variational preferences under convex risk measures. We explore a general dual representation for the composition between risk measures and utilities. We study the properties of the…

Mathematical Finance · Quantitative Finance 2024-10-11 Marcelo Righi

We consider a financial market model driven by an R^n-valued Gaussian process with stationary increments which is different from Brownian motion. This driving noise process consists of $n$ independent components, and each component has…

Probability · Mathematics 2008-12-02 Akihiko Inoue , Yumiharu Nakano

We study the feasibility and noise sensitivity of portfolio optimization under some downside risk measures (Value-at-Risk, Expected Shortfall, and semivariance) when they are estimated by fitting a parametric distribution on a finite sample…

Risk Management · Quantitative Finance 2008-12-10 Istvan Varga-Haszonits , Imre Kondor

In the present paper, the primal-dual problem consisting of the investment risk minimization problem and the expected return maximization problem in the mean-variance model is discussed using replica analysis. As a natural extension of the…

Portfolio Management · Quantitative Finance 2016-12-20 Takashi Shinzato

Probabilistic numerics casts numerical tasks, such the numerical solution of differential equations, as inference problems to be solved. One approach is to model the unknown quantity of interest as a random variable, and to constrain this…

Numerical Analysis · Mathematics 2021-10-29 Onur Teymur , Christopher N. Foley , Philip G. Breen , Toni Karvonen , Chris. J. Oates

This paper presents an implementation of the Imperialist Competitive Algorithm (ICA) for solving the fuzzy random portfolio selection problem where the asset returns are represented by fuzzy random variables. Portfolio Optimization is an…

Optimization and Control · Mathematics 2014-02-21 Mir Ehsan Hesam Sadati , Jamshid Bagherzadeh Mohasefi

This book gives the basic notions of fuzzy matrix theory and its applications to simple fuzzy models. The approach is non-traditional in order to attract many students to use this methodology in their research. The traditional approach of…

General Mathematics · Mathematics 2007-05-23 W. B. Vasantha Kandasamy , Florentin Smarandache , K. Ilanthenral

Fuzzy optimization deals with the problem of determining 'optimal'solutions of an optimization problem when some of the elements that appear in the problem are not precise. In real situations it is usual to have information, in systems…

Optimization and Control · Mathematics 2009-08-27 Victor Blanco , Justo Puerto

In this paper, we introduce a fundamental framework to create a bridge between Probability Theory and Fuzzy Logic. Indeed, our theory formulates a random experiment of selecting crisp elements with the criterion of having a certain fuzzy…

Logic in Computer Science · Computer Science 2022-05-31 Amir Saki , Usef Faghihi