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We provide a general constrained risk inequality that applies to arbitrary non-decreasing losses, extending a result of Brown and Low [Ann. Stat. 1996]. Given two distributions $P_0$ and $P_1$, we find a lower bound for the risk of…

Statistics Theory · Mathematics 2020-04-17 John C. Duchi , Feng Ruan

Basel II and Solvency 2 both use the Value-at-Risk (VaR) as the risk measure to compute the Capital Requirements. In practice, to calibrate the VaR, a normal approximation is often chosen for the unknown distribution of the yearly log…

Methodology · Statistics 2013-11-04 Marie Kratz

We consider the problem of estimating an unknown $\theta\in {\mathbb{R}}^n$ from noisy observations under the constraint that $\theta$ belongs to certain convex polyhedral cones in ${\mathbb{R}}^n$. Under this setting, we prove bounds for…

Statistics Theory · Mathematics 2015-07-31 Sabyasachi Chatterjee , Adityanand Guntuboyina , Bodhisattva Sen

We show that a wide class of risk-constrained nonconvex functional optimization problems exhibit strong duality, regardless of nonconvexity. We develop two novel results under distinct sets of assumptions, establishing strong duality over…

Optimization and Control · Mathematics 2025-11-17 Dionysis Kalogerias , Spyridon Pougkakiotis

We consider a distributionally robust formulation of stochastic optimization problems arising in statistical learning, where robustness is with respect to uncertainty in the underlying data distribution. Our formulation builds on…

Optimization and Control · Mathematics 2021-06-09 Mert Gürbüzbalaban , Andrzej Ruszczyński , Landi Zhu

We consider a class of optimization problems with Cartesian variational inequality (CVI) constraints, where the objective function is convex and the CVI is associated with a monotone mapping and a convex Cartesian product set. This…

Optimization and Control · Mathematics 2021-02-16 Harshal D. Kaushik , Farzad Yousefian

Convex sample approximations of chance-constrained optimization problems are considered, in which chance constraints are replaced by sets of sampled constraints. We propose a randomized sample selection strategy that allows tight bounds to…

Optimization and Control · Mathematics 2018-05-22 Mark Cannon

We consider an investor who seeks to maximize her expected utility derived from her terminal wealth relative to the maximum performance achieved over a fixed time horizon, and under a portfolio drawdown constraint, in a market with local…

Portfolio Management · Quantitative Finance 2016-10-28 Ankush Agarwal , Ronnie Sircar

We study estimation of a multivariate function $f:{\bf R}^d \to {\bf R}$ when the observations are available from function $Af$, where $A$ is a known linear operator. Both the Gaussian white noise model and density estimation are studied.…

Statistics Theory · Mathematics 2009-04-21 Jussi Klemelä , Enno Mammen

The concept of univariate Range Value-at-Risk, presented by Cont et al. (2010), is extended in the multidimensional setting. Traditional risk measures are not well suited when dealing with heavy-tail distributions and infinite tail…

Risk Management · Quantitative Finance 2020-05-27 Roba Bairakdar , Lu Cao , Melina Mailhot

In this work the problem of optimal harvesting policy selection for natural resources management under model uncertainty is investigated. Under the framework of the neoclassical growth model dynamics, the associated optimal control problem…

Optimization and Control · Mathematics 2023-10-24 Georgios I. Papayiannis

We characterize when a convex risk measure associated to a law-invariant acceptance set in $L^\infty$ can be extended to $L^p$, $1\leq p<\infty$, preserving finiteness and continuity. This problem is strongly connected to the statistical…

Risk Management · Quantitative Finance 2014-01-15 Pablo Koch-Medina , Cosimo Munari

We investigate the problem of finding upper and lower bounds for a Choquet risk measure of a nonlinear function of two risk factors, when the marginal distributions of the risk factors are ambiguous and represented by nonadditive measures…

Probability · Mathematics 2023-05-19 Mario Ghossoub , David Saunders , Kelvin Shuangjian Zhang

This paper proposes a simple approach to derive efficient error bounds for learning multiple components with sparsity-inducing regularization. We show that for such regularization schemes, known decompositions of the Rademacher complexity…

Machine Learning · Statistics 2020-01-24 Fabien Lauer

Classical multi-armed bandit problems use the expected value of an arm as a metric to evaluate its goodness. However, the expected value is a risk-neutral metric. In many applications like finance, one is interested in balancing the…

Machine Learning · Computer Science 2019-06-04 Anmol Kagrecha , Jayakrishnan Nair , Krishna Jagannathan

In order to model risk aversion in reinforcement learning, an emerging line of research adapts familiar algorithms to optimize coherent risk functionals, a class that includes conditional value-at-risk (CVaR). Because optimizing the…

Machine Learning · Computer Science 2021-03-09 Audrey Huang , Liu Leqi , Zachary C. Lipton , Kamyar Azizzadenesheli

Recently, based on the idea of randomizing space theory, random convex analysis has been being developed in order to deal with the corresponding problems in random environments such as analysis of conditional convex risk measures and the…

Functional Analysis · Mathematics 2017-09-11 Tiexin Guo , Erxin Zhang , Mingzhi Wu , Bixuan Yang , George Yuan , Xiaolin Zeng

We introduce and study the main properties of a class of convex risk measures that refine Expected Shortfall by simultaneously controlling the expected losses associated with different portions of the tail distribution. The corresponding…

Risk Management · Quantitative Finance 2021-08-19 Matteo Burzoni , Cosimo Munari , Ruodu Wang

Fr\'echet regression, or conditional Barycenters, is a flexible framework for modeling relationships between covariates (usually Euclidean) and response variables on general metric spaces, e.g., probability distributions or positive…

Optimization and Control · Mathematics 2026-04-07 Duc Toan Nguyen , César A. Uribe

A wide array of machine learning problems are formulated as the minimization of the expectation of a convex loss function on some parameter space. Since the probability distribution of the data of interest is usually unknown, it is is often…

Optimization and Control · Mathematics 2019-05-27 Emilie Chouzenoux , Henri Gérard , Jean-Christophe Pesquet