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This paper is concerned with the maximum principle and dynamic programming principle for mean-variance portfolio selection of jump diffusions and their relationship. First, the optimal portfolio and efficient frontier of the problem are…

Portfolio Management · Quantitative Finance 2025-08-05 Qiyue Zhang , Jingtao Shi

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

In a reinforcement learning (RL) framework, we study the exploratory version of the continuous time expected utility (EU) maximization problem with a portfolio constraint that includes widely-used financial regulations such as short-selling…

Mathematical Finance · Quantitative Finance 2024-12-17 Huy Chau , Duy Nguyen , Thai Nguyen

Focusing on gains & losses relative to a risk-free benchmark instead of terminal wealth, we consider an asset allocation problem to maximize time-consistently a mean-risk reward function with a general risk measure which is i)…

Mathematical Finance · Quantitative Finance 2026-02-18 Felix Fießinger , Mitja Stadje

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 consider the mean--variance portfolio optimization problem under the game theoretic framework and without risk-free assets. The problem is solved semi-explicitly by applying the extended Hamilton--Jacobi--Bellman equation. Although the…

Portfolio Management · Quantitative Finance 2016-02-17 Chi Kin Lam , Yuhong Xu , Guosheng Yin

In this paper, we study a stochastic linear-quadratic control problem with random coefficients and regime switching on a horizon $[0,T\wedge\tau]$, where $\tau$ is a given random jump time for the underlying state process and $T$ is a…

Optimization and Control · Mathematics 2022-01-19 Ying Hu , Xiaomin Shi , Zuo Quan Xu

In this paper, the mean-variance portfolio selection problem with Poisson jumps are studied, where the recursive utility is given by the solution to a backward stochastic differential equation with Poisson jumps. Both the maximum principle…

Optimization and Control · Mathematics 2025-12-02 Qiyue Zhang , Jingtao Shi

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

This paper studies a variation of the continuous-time mean-variance portfolio selection where a tracking-error penalization is added to the mean-variance criterion. The tracking error term penalizes the distance between the allocation…

Computational Finance · Quantitative Finance 2020-09-21 William Lefebvre , Gregoire Loeper , Huyên Pham

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

This paper studies a continuous-time market {under stochastic environment} where an agent, having specified an investment horizon and a target terminal mean return, seeks to minimize the variance of the return with multiple stocks and a…

Portfolio Management · Quantitative Finance 2013-02-28 Wan-Kai Pang , Yuan-Hua Ni , Xun Li , Ka-Fai Cedric Yiu

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 a mean-variance portfolio selection problem in a financial market with contagion risk. The risky assets follow a jump-diffusion model, in which jumps are driven by a multivariate Hawkes process with mutual-excitation effect. The…

Mathematical Finance · Quantitative Finance 2021-10-19 Yang Shen , Bin Zou

In the market place, diversification reduces risk and provides protection against extreme events by ensuring that one is not overly exposed to individual occurrences. We argue that diversification is best measured by characteristics of the…

Portfolio Management · Quantitative Finance 2011-02-24 Ulrich Kirchner , Caroline Zunckel

We investigate exploratory randomization for an extended linear-exponential-quadratic-Gaussian (LEQG) control problem in discrete time. This extended control problem is related to the structure of risk-sensitive investment management…

Optimization and Control · Mathematics 2025-09-22 Sebastien Lleo , Wolfgang Runggaldier

We solve a min-max problem in a robust exploratory mean-variance problem with drift uncertainty in this paper. It is verified that robust investors choose the Sharpe ratio with minimal $L^2$ norm in an admissible set. A reinforcement…

Optimization and Control · Mathematics 2021-08-10 Chenchen Mou , Weiwei Zhang , Chao Zhou

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

In this paper, we consider a continuous-time mean-variance portfolio selection with regime-switching and random horizon. Unlike previous works, the dynamic of assets are described by non-Markovian regime-switching models in the sense that…

Mathematical Finance · Quantitative Finance 2022-05-16 Tian Chen , Ruyi Liu , Zhen Wu

In this paper, we study the portfolio utility maximization in the case where the risky asset is driven by a Brownian motion and an independent homogeneous Poisson measure, with strategies that may include jump signals. This means that the…

Optimization and Control · Mathematics 2026-05-21 Lokmane Abbas Turki , Sigui Brice Dro , Idris Kharroubi