English
Related papers

Related papers: Robust Utility Maximization with Drift and Volatil…

200 papers

This paper studies a robust utility maximization problem for intractable claims under distributional ambiguity, where the distribution of the claim cannot be inferred from market information and its dependence with tradable assets is…

Optimization and Control · Mathematics 2026-04-17 Guohui Guan , Zongxia Liang , Xingjian Ma

We introduce a linear space of finitely additive measures to treat the problem of optimal expected utility from consumption under a stochastic clock and an unbounded random endowment process. In this way we establish existence and…

General Finance · Quantitative Finance 2008-12-10 Gordan Zitkovic

We consider a utility maximization problem for an investment-consumption portfolio when the current utility depends also on the wealth process. Such kind of problems arise, e.g., in portfolio optimization with random horizon or with random…

Portfolio Management · Quantitative Finance 2015-02-10 Salvatore Federico , Paul Gassiat , Fausto Gozzi

A celebrated financial application of convex duality theory gives an explicit relation between the following two quantities: (i) The optimal terminal wealth $X^*(T) : = X_{\varphi^*}(T)$ of the problem to maximize the expected $U$-utility…

Portfolio Management · Quantitative Finance 2015-09-08 Bernt Øksendal , Agnès Sulem

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

The aim of this short note is to present a solution to the discrete time exponential utility maximization problem in a case where the underlying asset has a multivariate normal distribution. In addition to the usual setting considered in…

Mathematical Finance · Quantitative Finance 2023-06-27 Yan Dolinsky , Or Zuk

We study robust stochastic optimization problems in the quasi-sure setting in discrete-time. The strategies in the multi-period-case are restricted to those taking values in a discrete set. The optimization problems under consideration are…

Optimization and Control · Mathematics 2019-04-25 Ariel Neufeld , Mario Sikic

In this work we study the continuous time exponential utility maximization problem in the framework of an investor who is informed about the price changes with a delay. This leads to a non-Markovian stochastic control problem. In the case…

Mathematical Finance · Quantitative Finance 2025-10-06 Yan Dolinsky

We study a general robust utility maximization problem in a discrete-time frictionless market. The investor is assumed to have a possibly infinite, random, nonconcave, and nondecreasing utility function defined on the whole real line. She…

Mathematical Finance · Quantitative Finance 2025-10-14 Laurence Carassus , Massinissa Ferhoune

We consider the problem of utility maximization for small traders on incomplete financial markets. As opposed to most of the papers dealing with this subject, the investors' trading strategies we allow underly constraints described by…

Probability · Mathematics 2008-12-10 Ying Hu , Peter Imkeller , Matthias Muller

We maximize the expected utility of terminal wealth in an incomplete market where there are cone constraints on the investor's portfolio process and the utility function is not assumed to be strictly concave or differentiable. We establish…

Computational Finance · Quantitative Finance 2010-10-21 Nicholas Westray , Harry Zheng

We consider the Brownian market model and the problem of expected utility maximization of terminal wealth. We, specifically, examine the problem of maximizing the utility of terminal wealth under the presence of transaction costs of a…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Theodoros Tsagaris

In this paper we extend the stability results of [4]}. Our utility maximization problem is defined as an essential supremum of conditional expectations of the terminal values of wealth processes, conditioned on the filtration at the…

Portfolio Management · Quantitative Finance 2011-03-28 Erhan Bayraktar , Ross Kravitz

This paper studies the problem of maximizing expected utility from terminal wealth combining a static position in derivative securities, which we assume can be traded only at time zero, with a traditional dynamic trading strategy in stocks.…

Portfolio Management · Quantitative Finance 2013-10-09 Pietro Siorpaes

The paper studies the robust maximization of utility of terminal wealth in the diffusion financial market model. The underlying model consists with risky tradable asset, whose price is described by diffusion process with misspecified trend…

Portfolio Management · Quantitative Finance 2009-11-17 R. Tevzadze , T. Toronjadze

In this paper, we propose a new class of optimization problems, which maximize the terminal wealth and accumulated consumption utility subject to a mean variance criterion controlling the final risk of the portfolio. The multiple-objective…

Mathematical Finance · Quantitative Finance 2020-11-30 Ben-Zhang Yang , Xin-Jiang He , Song-Ping Zhu

We study a robust maximization problem from terminal wealth and consumption under a convex constraints on the portfolio. We state the existence and the uniqueness of the consumption-investment strategy by studying the associated quadratic…

Probability · Mathematics 2014-09-23 Anis Matoussi , Hanen Mezghani , Mohamed Mnif

We consider a utility-maximization problem in a general semimartingale financial model, subject to constraints on the number of shares held in each risky asset. These constraints are modeled by predictable convex-set-valued processes whose…

Portfolio Management · Quantitative Finance 2013-02-25 Kasper Larsen , Gordan Žitković

We consider a discrete-time model of a financial market where a risky asset is bought and sold with transactions having a transient price impact. It is shown that the corresponding utility maximization problem admits a solution. We manage…

Portfolio Management · Quantitative Finance 2025-11-18 Lóránt Nagy , Miklós Rásonyi

We treat a discrete-time asset allocation problem in an arbitrage-free, generically incomplete financial market, where the investor has a possibly non-concave utility function and wealth is restricted to remain non-negative. Under easily…

Mathematical Finance · Quantitative Finance 2015-04-23 Laurence Carassus , Miklós Rásonyi , Andrea M. Rodrigues