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We consider monotone mean-variance (MMV) portfolio selection problems with a conic convex constraint under diffusion models, and their counterpart problems under mean-variance (MV) preferences. We obtain the precommitted optimal strategies…

Portfolio Management · Quantitative Finance 2022-06-01 Yang Shen , Bin Zou

The monotone mean-variance (MMV) preference proposed by Maccheroni, et al. (Math. Finance 19(3): 487-521, 2009) fails to differentiate strictly dominant payoffs, which may cause inconsistency in portfolio decision-making. This paper…

Mathematical Finance · Quantitative Finance 2026-04-03 Yike Wang , Yusha Chen , Jingzhen Liu , Zhenyu Cui

This paper studies an optimal investment-reinsurance problem for an insurer (she) under the Cram\'er--Lundberg model with monotone mean--variance (MMV) criterion. At any time, the insurer can purchase reinsurance (or acquire new business)…

Portfolio Management · Quantitative Finance 2024-05-30 Xiaomin Shi , Zuo Quan Xu

This paper studies a robust stochastic control problem with a monotone mean-variance cost functional and random coefficients. The main technique is to find the saddle point through two backward stochastic differential equations (BSDEs) with…

Optimization and Control · Mathematics 2024-08-19 Yuyang Chen , Tianjiao Hua , Peng Luo

The Markowitz problem consists of finding in a financial market a self-financing trading strategy whose final wealth has maximal mean and minimal variance. We study this in continuous time in a general semimartingale model and under cone…

Portfolio Management · Quantitative Finance 2012-06-04 Christoph Czichowsky , Martin Schweizer

We investigate time-inconsistent portfolio problems under a broader class of monotone mean-variance (MMV) preferences. Since the optimal strategies for MMV and mean-variance (MV) preferences coincide, the MMV optimal strategies at different…

Optimization and Control · Mathematics 2026-04-21 Yike Wang , Yusha Chen , Jingzhen Liu

We consider continuous-time mean-variance portfolio selection with bankruptcy prohibition under convex cone portfolio constraints. This is a long-standing and difficult problem not only because of its theoretical significance, but also for…

Portfolio Management · Quantitative Finance 2015-07-27 Xun Li , Zuo Quan Xu

We use the martingale method to discuss the relationship between mean-variance (MV) and monotone mean-variance (MMV) portfolio selections. We propose a unified framework to discuss the relationship in general financial markets without any…

Optimization and Control · Mathematics 2024-03-12 Yuchen Li , Zongxia Liang , Shunzhi Pang

Optimization of conditional convex risk measure is a central theme in dynamic portfolio selection theory, which has not yet systematically studied in the previous literature perhaps since conditional convex risk measures are neither random…

Optimization and Control · Mathematics 2019-10-24 Tiexin Guo

This paper compares the optimal investment problems based on monotone mean-variance (MMV) and mean-variance (MV) preferences in the L\'{e}vy market with an untradable stochastic factor. It is an open question proposed by Trybu{\l}a and…

Optimization and Control · Mathematics 2023-11-08 Yuchen Li , Zongxia Liang , Shunzhi Pang

We study continuous-time portfolio selection under monotone mean-variance (MMV) preferences in a jump-diffusion model, presenting an explicit solution different from that under classical mean-variance (MV) preferences in dynamic settings…

Mathematical Finance · Quantitative Finance 2024-05-14 Yuchen Li , Zongxia Liang , Shunzhi Pang

This paper studies the continuous time mean-variance portfolio selection problem with one kind of non-linear wealth dynamics. To deal the expectation constraint, an auxiliary stochastic control problem is firstly solved by two new…

Mathematical Finance · Quantitative Finance 2022-11-03 Shaolin Ji , Hanqing Jin , Xiaomin Shi

This paper studies dynamic mean-variance (MV) asset allocation problems in general incomplete markets. Besides of the conventional MV objective on portfolio's terminal wealth, our framework can accommodate running MV objectives with general…

Mathematical Finance · Quantitative Finance 2024-12-25 Qian Lei , Chi Seng Pun , Jingxiang Tang

The discrete-time mean-variance portfolio selection formulation, a representative of general dynamic mean-risk portfolio selection problems, does not satisfy time consistency in efficiency (TCIE) in general, i.e., a truncated pre-committed…

Portfolio Management · Quantitative Finance 2014-03-05 Xiangyu Cui , Duan Li , Xun Li

We extend the classical mean-variance (MV) framework and propose a robust and sparse portfolio selection model incorporating an ellipsoidal uncertainty set to reduce the impact of estimation errors and fixed transaction costs to penalize…

Portfolio Management · Quantitative Finance 2024-12-30 J. Chen , S. D. Ahipaşaoğlu , N. Zhang , Y. Yang

In this paper, both dynamic mean-variance portfolio selection problems and dynamic variance hedging problems are discussed under non-Markovian framework. Explicit closed-loop equilibrium strategies of these problems are respectively…

Optimization and Control · Mathematics 2018-02-06 Tianxiao Wang

We study a continuous-time portfolio optimization problem under an explicit constraint on the Deviation Conditional Value-at-Risk (DCVaR), defined as the difference between the CVaR and the expected terminal wealth. While the mean-CVaR…

Optimization and Control · Mathematics 2025-10-01 Jérôme Lelong , Véronique Maume-Deschamps , William Thevenot

This paper concerns a continuous time mean-variance (MV) portfolio selection problem in a jump-diffusion financial model with no-shorting trading constraint. The problem is reduced to two subproblems: solving a stochastic linear-quadratic…

Optimization and Control · Mathematics 2024-06-07 Xiaomin Shi , Zuo Quan Xu

We solve the problem of mean-variance hedging for general semimartingale models via stochastic control methods. After proving that the value process of the associated stochastic control problem has a quadratic structure, we characterize its…

Probability · Mathematics 2012-11-30 Monique Jeanblanc , Michael Mania , Marina Santacroce , Martin Schweizer

We consider an optimal investment and risk control problem for an insurer under the mean-variance (MV) criterion. By introducing a deterministic auxiliary process defined forward in time, we formulate an alternative time-consistent problem…

Portfolio Management · Quantitative Finance 2021-01-12 Yang Shen , Bin Zou
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