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In this work, we explore the possibility of utilizing transfer learning techniques to address the financial portfolio optimization problem. We introduce a novel concept called "transfer risk", within the optimization framework of transfer…

Portfolio Management · Quantitative Finance 2023-07-26 Haoyang Cao , Haotian Gu , Xin Guo , Mathieu Rosenbaum

In this paper we study the problem of optimally paying out dividends from an insurance portfolio, when the criterion is to maximize the expected discounted dividends over the lifetime of the company and the portfolio contains claims due to…

Portfolio Management · Quantitative Finance 2023-11-13 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

The investment economy is a main characteristic of prosperous society. The investment portfolio management is a main financial problem, which has to be solved by the investment, commercial and central banks with the application of modern…

General Finance · Quantitative Finance 2013-02-05 Dimitri O. Ledenyov , Viktor O. Ledenyov

In this paper we investigate a new class of growth rate maximization problems based on impulse control strategies such that the average number of trades per time unit does not exceed a fixed level. Moreover, we include proportional…

Portfolio Management · Quantitative Finance 2013-06-10 Sören Christensen , Marc Wittlinger

We consider an optimal stochastic control problem in which a firm's cash/surplus process is controlled by dividend payments and capital injections. Stockholders aim to maximize their dividend stream minus the cost of injecting capital, if…

Optimization and Control · Mathematics 2023-11-20 Jean-François Renaud , Alexandre Roch , Clarence Simard

The paper solves the problem of optimal portfolio choice when the parameters of the asset returns distribution, like the mean vector and the covariance matrix are unknown and have to be estimated by using historical data of the asset…

Statistical Finance · Quantitative Finance 2023-04-19 David Bauder , Taras Bodnar , Nestor Parolya , Wolfgang Schmid

We consider the problem of optimal investment and consumption in a class of multidimensional jump-diffusion models in which asset prices are subject to mutually exciting jump processes. This captures a type of contagion where each downward…

Portfolio Management · Quantitative Finance 2012-10-08 Yacine Aït-Sahalia , T. R. Hurd

We study the problem of optimal risk policies and dividend strategies for an insurance company operating under the constraint that the timing of shareholder payouts is governed by the arrival times of a Poisson process. Concurrently, risk…

Optimization and Control · Mathematics 2025-02-19 Mark Kelbert , Harold A. Moreno-Franco

Given a set of assets and an investment capital, the classical portfolio selection problem consists in determining the amount of capital to be invested in each asset in order to build the most profitable portfolio. The portfolio…

Portfolio Management · Quantitative Finance 2019-07-17 Justo Puerto , Moises Rodríguez-Madrena , Andrea Scozzari

This paper studies a type of periodic utility maximization problems for portfolio management in incomplete stochastic factor models with convex trading constraints. The portfolio performance is periodically evaluated on the relative ratio…

Mathematical Finance · Quantitative Finance 2024-11-22 Wenyuan Wang , Kaixin Yan , Xiang Yu

We study an optimal investment/consumption problem in a model capturing market and credit risk dependencies. Stochastic factors drive both the default intensity and the volatility of the stocks in the portfolio. We use the martingale…

Mathematical Finance · Quantitative Finance 2018-06-20 Lijun Bo , Agostino Capponi

The aim of this paper is to investigate the impact of rebalancing frequency and transaction costs on the log-optimal portfolio, which is a portfolio that maximizes the expected logarithmic growth rate of an investor's wealth. We prove that…

Portfolio Management · Quantitative Finance 2023-01-10 Chung-Han Hsieh , Yi-Shan Wong

Portfolio optimization is a primary component of the decision-making process in finance, aiming to tactfully allocate assets to achieve optimal returns while considering various constraints. Herein, we proposed a method that uses the…

Quantum Physics · Physics 2024-12-24 Chansreynich Huot , Kimleang Kea , Tae-Kyung Kim , Youngsun Han

We consider an investor facing a classical portfolio problem of optimal investment in a log-Brownian stock and a fixed-interest bond, but constrained to choose portfolio and consumption strategies that reduce a dynamic shortfall risk…

Portfolio Management · Quantitative Finance 2017-08-04 Imke Redeker , Ralf Wunderlich

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

This paper studies a continuous-time portfolio selection problem under a general distribution of random risk aversion (RRA). We provide a complete characterization of all deterministic equilibrium strategies in closed form. Our results show…

Mathematical Finance · Quantitative Finance 2026-02-02 Weilun Cheng , Zongxia Liang , Sheng Wang , Jianming Xia

We study the optimal portfolio selection problem under relative performance criteria in the market model with random coefficients from the perspective of many players game theory. We consider five random coefficients which consist of three…

Portfolio Management · Quantitative Finance 2022-09-16 Jeong Yin Park

This paper considers the maximization of the expected maximum value of a portfolio of random variables subject to a budget constraint. We refer to this as the optimal college application problem. When each variable's cost, or each college's…

Optimization and Control · Mathematics 2022-05-10 Max Kapur , Sung-Pil Hong

Automated investment managers, or robo-advisors, have emerged as an alternative to traditional financial advisors. The viability of robo-advisors crucially depends on their ability to offer personalized financial advice. We introduce a…

Portfolio Management · Quantitative Finance 2020-11-25 Agostino Capponi , Sveinn Olafsson , Thaleia Zariphopoulou

Stock trading strategy plays a crucial role in investment companies. However, it is challenging to obtain optimal strategy in the complex and dynamic stock market. We explore the potential of deep reinforcement learning to optimize stock…

Machine Learning · Computer Science 2022-08-02 Xiao-Yang Liu , Zhuoran Xiong , Shan Zhong , Hongyang Yang , Anwar Walid