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The future value of a security is described as a random variable. Distribution of this random variable is the formal image of risk uncertainty. On the other side, any present value is defined as a value equivalent to the given future value.…

综合金融 · 定量金融 2013-02-05 Krzysztof Piasecki

Many mathematical models utilize limit processes. Continuous functions and the calculus, differential equations and topology, all are based on limits and continuity. However, when we perform measurements and computations, we can achieve…

人工智能 · 计算机科学 2025-10-20 Mark Burgin

The local volatility model is a widely used for pricing and hedging financial derivatives. While its main appeal is its capability of reproducing any given surface of observed option prices---it provides a perfect fit---the essential…

计算金融 · 定量金融 2019-01-24 Martin Tegnér , Stephen Roberts

We provide closed-form market equilibrium formula consolidating informational imperfections and investors beliefs. Based on Merton's model, we characterize the equilibrium expected excess returns vector with incomplete information. We then…

证券定价 · 定量金融 2025-02-14 Hafid Lalioui , Amine Ben Amar , Makram Bellalah

We present a variation of the well-known binomial model of asset prices. This variation incorporates a bound to short-selling, inspired by a model from Gunduz Caginalp[2]. We formalize this model and prove a formula for all the moments of…

数理金融 · 定量金融 2025-05-27 Nahuel I. Arca

Mean-variance analysis is widely used in portfolio management to identify the best portfolio that makes an optimal trade-off between expected return and volatility. Yet, this method has its limitations, notably its vulnerability to…

投资组合管理 · 定量金融 2023-11-27 Kwong Yu Chong

We introduce a general theory of epistemic random fuzzy sets for reasoning with fuzzy or crisp evidence. This framework generalizes both the Dempster-Shafer theory of belief functions, and possibility theory. Independent epistemic random…

人工智能 · 计算机科学 2024-05-08 Thierry Denoeux

The superiority and inferiority ranking (SIR) method is a generation of the well-known PROMETHEE method, which can be more efficient to deal with multi-criterion decision making (MCDM) problem. Intuitionistic fuzzy sets (IFSs), as an…

人工智能 · 计算机科学 2011-07-07 Junyi Chai , James N. K. Liu

Realization of uncertainty of prices is captured by volatility, that is the tendency of prices to vary along a period of time. This is generally measured as standard deviation of daily returns. In this paper we propose and investigate the…

计算金融 · 定量金融 2017-05-04 Luigi Troiano , Elena Mejuto Villa , Pravesh Kriplani

The fractional Brownian motion (fBm) extends the standard Brownian motion by introducing some dependence between non-overlapping increments. Consequently, if one considers for example that log-prices follow an fBm, one can exploit the…

数理金融 · 定量金融 2021-09-02 Matthieu Garcin

Motivated by the increasing exposition of decision makers to both statistical and judgemental based sources of demand information, we develop in this paper a fuzzy Gaussian Mixture Model (GMM) for the newsvendor permitting to mix…

最优化与控制 · 数学 2021-05-13 Farzad Fathizadeh , Jean Savinien , Yacine Rekik

In this contribution we provide initial findings to the problem of modeling fuzzy rating responses in a psychometric modeling context. In particular, we study a probabilistic tree model with the aim of representing the stage-wise mechanisms…

统计方法学 · 统计学 2022-07-06 Antonio Calcagnì , Luigi Lombardi

In this work, we first define intuitionistic fuzzy parametrized soft sets (intuitionistic FP-soft sets) and study some of their properties. We then introduce an adjustable approaches to intuitionistic FP-soft sets based decision making. We…

逻辑 · 数学 2015-02-24 İrfan Deli , Naim Çağman

In this paper we present a synthesis of work performed on tow information retrieval models: Bayesian network information retrieval model witch encode (in) dependence relation between terms and possibilistic network information retrieval…

信息检索 · 计算机科学 2012-06-06 Kamel Garrouch , Mohamed Nazih Omri , Bachir Elayeb

No--arbitrage property provides a simple method for pricing financial derivatives. However, arbitrage opportunities exist among different markets in various fields, even for a very short time. By knowing that an arbitrage property exists,…

计算金融 · 定量金融 2022-05-24 Yasushi Ota , Yu Jiang , Daiki Maki

Factorized information criterion (FIC) is a recently developed approximation technique for the marginal log-likelihood, which provides an automatic model selection framework for a few latent variable models (LVMs) with tractable inference…

机器学习 · 计算机科学 2015-04-23 Kohei Hayashi , Shin-ichi Maeda , Ryohei Fujimaki

Portfolio selection involves optimizing simultaneously financial goals such as risk, return and Sharpe ratio. This problem holds considerable importance in economics. However, little has been studied related to the nonconvexity of the…

最优化与控制 · 数学 2023-05-02 Vuong D. Nguyen , Nguyen Kim Duyen , Nguyen Minh Hai , Bui Khuong Duy

We develop a representation of a decision maker's uncertainty based on e-variables. Like the Bayesian posterior, this *e-posterior* allows for making predictions against arbitrary loss functions that may not be specified ex ante. Unlike the…

统计理论 · 数学 2023-09-20 Peter Grünwald

We proposed classification models that utilize the result from the Quasi-Reversibility Method, which solves the Black-Scholes equation to forecast the option prices one day in advance. Combining the minimizer from QRM with our machine…

最优化与控制 · 数学 2025-01-28 Benjamin Jiang , Matthieu Durieux , Kirill V. Golubnichiy

A linear multi-factor model is one of the most important tools in equity portfolio management. The linear multi-factor models are widely used because they can be easily interpreted. However, financial markets are not linear and their…

机器学习 · 计算机科学 2019-02-01 Kei Nakagawa , Tomoki Ito , Masaya Abe , Kiyoshi Izumi