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We examine the problem of optimal portfolio allocation within the framework of utility theory. We apply exponential utility to derive the optimal diversification strategy and logarithmic utility to determine the optimal leverage. We enhance…

投资组合管理 · 定量金融 2025-10-01 Vladimir Markov

This work derives an approximate analytical single period solution of the portfolio choice problem for the power utility function. It is possible to do so if we consider that the asset returns follow a multivariate normal distribution. It…

投资组合管理 · 定量金融 2021-10-13 Dmytro Ivasiuk

Obtaining utility maximizing optimal portfolios in closed form is a challenging issue when the return vector follows a more general distribution than the normal one. In this note, we give closed form expressions, in markets based on…

投资组合管理 · 定量金融 2026-02-10 Miklós Rásonyi , Hasanjan Sayit

Portfolio selection problems that optimize expected utility are usually difficult to solve. If the number of assets in the portfolio is large, such expected utility maximization problems become even harder to solve numerically. Therefore,…

投资组合管理 · 定量金融 2026-02-17 Nuerxiati Abudurexiti , Erhan Bayraktar , Takaki Hayashi , Hasanjan Sayit

This paper studies a mean-risk portfolio choice problem for log-returns in a continuous-time, complete market. This is a growth-optimal problem with risk control. The risk of log-returns is measured by weighted Value-at-Risk (WVaR), which…

风险管理 · 定量金融 2021-12-30 Pengyu Wei , Zuo Quan Xu

We consider a single-period portfolio selection problem for an investor, maximizing the expected ratio of the portfolio utility and the utility of a best asset taken in hindsight. The decision rules are based on the history of stock returns…

投资组合管理 · 定量金融 2020-06-11 Dmitry B. Rokhlin

Classical mean-variance portfolio theory tells us how to construct a portfolio of assets which has the greatest expected return for a given level of return volatility. Utility theory then allows an investor to choose the point along this…

投资组合管理 · 定量金融 2009-09-21 Alex Dannenberg

In this paper, we consider the optimal portfolio liquidation problem under the dynamic mean-variance criterion and derive time-consistent solutions in three important models. We give adapted optimal strategies under a reconsidered…

交易与市场微观结构 · 定量金融 2015-11-02 Jia-Wen Gu , Mogens Steffensen

We propose a novel portfolio selection approach that manages to ease some of the problems that characterise standard expected utility maximisation. The optimal portfolio is no longer defined as the extremum of a suitably chosen utility…

凝聚态物理 · 物理学 2009-09-29 P. Rossi , M. Tavoni , F. Cocco , R. Marschinski

This paper introduces a new functional optimization approach to portfolio optimization problems by treating the unknown weight vector as a function of past values instead of treating them as fixed unknown coefficients in the majority of…

投资组合管理 · 定量金融 2020-12-10 Ka Wai Tsang , Zhaoyi He

Monotone mean-variance (MMV) utility is the minimal modification of the classical Markowitz utility that respects rational ordering of investment opportunities. This paper provides, for the first time, a complete characterization of optimal…

投资组合管理 · 定量金融 2026-05-19 Aleš Černý , Johannes Ruf , Martin Schweizer

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…

数理金融 · 定量金融 2020-11-30 Ben-Zhang Yang , Xin-Jiang He , Song-Ping Zhu

Under mean-variance-utility framework, we propose a new portfolio selection model, which allows wealth and time both have influences on risk aversion in the process of investment. We solved the model under a game theoretic framework and…

投资组合管理 · 定量金融 2020-08-11 Ben-Zhang Yang , Xin-Jiang He , Song-Ping Zhu

This paper considers the mean variance portfolio management problem. We examine portfolios which contain both primary and derivative securities. The challenge in this context is due to portfolio's nonlinearities. The delta-gamma…

投资组合管理 · 定量金融 2011-11-08 Yang Li , Traian A Pirvu

A {log-optimal} portfolio is any portfolio that maximizes the expected logarithmic growth (ELG) of an investor's wealth. This maximization problem typically assumes that the information of the true distribution of returns is known to the…

最优化与控制 · 数学 2023-10-16 Chung-Han Hsieh

In this paper, we consider a frequency-based portfolio optimization problem with $m \geq 2$ assets when the expected logarithmic growth (ELG) rate of wealth is used as the performance metric. With the aid of the notion called dominant…

投资组合管理 · 定量金融 2023-03-22 Chung-Han Hsieh

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…

最优化与控制 · 数学 2018-02-06 Tianxiao Wang

We study a robust portfolio optimization problem under model uncertainty for an investor with logarithmic or power utility. The uncertainty is specified by a set of possible L\'evy triplets; that is, possible instantaneous drift, volatility…

数理金融 · 定量金融 2016-03-23 Ariel Neufeld , Marcel Nutz

In the paper, we consider three quadratic optimization problems which are frequently applied in portfolio theory, i.e, the Markowitz mean-variance problem as well as the problems based on the mean-variance utility function and the quadratic…

投资组合管理 · 定量金融 2013-05-13 Taras Bodnar , Nestor Parolya , Wolfgang Schmid

This paper studies an optimal investing problem for a retiree facing longevity risk and living standard risk. We formulate the investing problem as a portfolio choice problem under a time-varying risk capacity constraint. We derive the…

投资组合管理 · 定量金融 2022-02-16 Weidong Tian , Zimu Zhu
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