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We study the problem of maximising terminal utility for an agent facing model uncertainty, in a frictionless discrete-time market with one safe asset and finitely many risky assets. We show that an optimal investment strategy exists if the…

Mathematical Finance · Quantitative Finance 2020-07-10 Miklós Rásonyi , Andrea Meireles-Rodrigues

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

In this article we consider an optimization problem of expected utility maximization of continuous-time trading in a financial market. This trading is constrained by a benchmark for a utility-based shortfall risk measure. The market…

Mathematical Finance · Quantitative Finance 2016-10-28 Oliver Janke

We consider a continuous-time market with proportional transaction costs. Under appropriate assumptions we prove the existence of optimal strategies for investors who maximize their worst-case utility over a class of possible models. We…

Mathematical Finance · Quantitative Finance 2018-12-06 Huy N. Chau , Miklos Rasonyi

We consider a discrete-time financial market model with finite time horizon and give conditions which guarantee the existence of an optimal strategy for the problem of maximizing expected terminal utility. Equivalent martingale measures are…

Probability · Mathematics 2008-12-10 Miklos Rasonyi , Lukasz Stettner

We consider a discrete time financial market with proportional transaction costs under model uncertainty, and study a num\'eraire-based semi-static utility maximization problem with an exponential utility preference. The randomization…

Mathematical Finance · Quantitative Finance 2019-08-02 Shuoqing Deng , Xiaolu Tan , Xiang Yu

We study a robust utility maximization problem in a general discrete-time frictionless market under quasi-sure no-arbitrage. The investor is assumed to have a random and concave utility function defined on the whole real-line. She also…

Mathematical Finance · Quantitative Finance 2024-02-28 Laurence Carassus , Massinissa Ferhoune

We introduce a price impact model which accounts for finite market depth, tightness and resilience. Its coupled bid- and ask-price dynamics induce convex liquidity costs. We provide existence of an optimal solution to the classical problem…

Mathematical Finance · Quantitative Finance 2018-04-23 Peter Bank , Moritz Voß

We study a robust stochastic optimization problem in the quasi-sure setting in discrete-time. We show that under a lineality-type condition the problem admits a maximizer. This condition is implied by the no-arbitrage condition in models of…

Mathematical Finance · Quantitative Finance 2018-05-11 Ariel Neufeld , Mario Sikic

We adress the maximization problem of expected utility from terminal wealth. The special feature of this paper is that we consider a financial market where the price process of risky assets can have a default time. Using dynamic…

Computational Finance · Quantitative Finance 2010-07-13 Thomas Lim , Marie-Claire Quenez

Stability of the utility maximization problem with random endowment and indifference prices is studied for a sequence of financial markets in an incomplete Brownian setting. Our novelty lies in the nonequivalence of markets, in which the…

Portfolio Management · Quantitative Finance 2015-06-25 Kim Weston

This work takes up the challenges of utility maximization problem when the market is indivisible and the transaction costs are included. First there is a so-called solvency region given by the minimum margin requirement in the problem…

Portfolio Management · Quantitative Finance 2010-03-16 Qingshuo Song , G. Yin , Chao Zhu

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

We give a general formulation of the utility maximization problem under nondominated model uncertainty in discrete time and show that an optimal portfolio exists for any utility function that is bounded from above. In the unbounded case,…

Portfolio Management · Quantitative Finance 2013-07-16 Marcel Nutz

This memoir presents a systematic study of the utility maximization problem of an investor in a constrained and unbounded financial market. Building upon the work of Hu et al. (2005) [Ann. Appl. Probab., 15, 1691--1712] in a bounded…

Probability · Mathematics 2024-10-16 Ying Hu , Gechun Liang , Shanjian Tang

This paper studies the problem of maximizing expected utility from terminal wealth in a semi-static market composed of derivative securities, which we assume can be traded only at time zero, and of stocks, which can be traded continuously…

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

We consider a general discrete-time financial market with proportional transaction costs as in [Kabanov, Stricker and R\'{a}sonyi Finance and Stochastics 7 (2003) 403--411] and [Schachermayer Math. Finance 14 (2004) 19--48]. In addition to…

Probability · Mathematics 2008-12-10 Bruno Bouchard , Huyên Pham

We study a multiplicative transient price impact model for an illiquid financial market, where trading causes price impact which is multiplicative in relation to the current price, transient over time with finite rate of resilience, and…

Optimization and Control · Mathematics 2019-06-27 Dirk Becherer , Todor Bilarev , Peter Frentrup

An explicit formula is derived for the value of weak information in a discrete time model that works for a wide range of utility functions including the logarithmic and power utility. We assume a complete market with a finite number of…

Mathematical Finance · Quantitative Finance 2019-05-29 Ayelet Amiran , Fabrice Baudoin , Skylyn Brock , Berend Coster , Ryan Craver , Ugonna Ezeaka , Phanuel Mariano , Mary Wishart

The effectiveness of utility-maximization techniques for portfolio management relies on our ability to estimate correctly the parameters of the dynamics of the underlying financial assets. In the setting of complete or incomplete financial…

Portfolio Management · Quantitative Finance 2008-12-10 Kasper Larsen , Gordan Zitkovic
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