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This paper considers the optimal portfolio selection problem in a dynamic multi-period stochastic framework with regime switching. The risk preferences are of exponential (CARA) type with an absolute coefficient of risk aversion which…

最优化与控制 · 数学 2011-02-25 Traian A Pirvu , Huayue Zhang

We maximize the expected utility from terminal wealth for an HARA investor when the market price of risk is an unobservable random variable. We compute the optimal portfolio explicitly and explore the effects of learning by comparing it…

投资组合管理 · 定量金融 2015-02-11 Michele Longo , Alessandra Mainini

We investigate the ergodic problem of growth-rate maximization under a class of risk constraints in the context of incomplete, It\^{o}-process models of financial markets with random ergodic coefficients. Including {\em value-at-risk}…

投资组合管理 · 定量金融 2008-12-02 Traian A. Pirvu , Gordan Zitkovic

We study risk-aware linear policy approximations for the optimal operation of an energy system with stochastic wind power, storage, and limited fuel. The resulting problem is a sequential decision-making problem with rolling forecasts. In…

系统与控制 · 电气工程与系统科学 2024-07-19 Thomas Mortimer , Robert Mieth

In this paper, we consider a multi-objective control problem for stochastic systems that seeks to minimize a cost of interest while ensuring safety. We introduce a novel measure of safety risk using the conditional value-at-risk and a set…

最优化与控制 · 数学 2018-02-23 Samantha Samuelson , Insoon Yang

The popularity of Conditional Value-at-Risk (CVaR), a risk functional from finance, has been growing in the control systems community due to its intuitive interpretation and axiomatic foundation. We consider a nonstandard optimal control…

系统与控制 · 电气工程与系统科学 2022-06-22 Margaret P. Chapman , Michael Fauss , Kevin M. Smith

We consider an optimal investment and consumption problem for a Black-Scholes financial market with stochastic coefficients driven by a diffusion process. We assume that an agent makes consumption and investment decisions based on CRRA…

投资组合管理 · 定量金融 2011-12-12 Berdjane Belkacem , Serguei Pergamenchtchikov

In this paper, we take up the analysis of a principal/agent model with moral hazard introduced in [17], with optimal contracting between competitive investors and an impatient bank monitoring a pool of long-term loans subject to Markovian…

概率论 · 数学 2015-04-07 Henri Pagès , Dylan Possamaï

We solve an expected utility-maximization problem with a Value-at-risk constraint on the terminal portfolio value in an incomplete financial market due to stochastic volatility. To derive the optimal investment strategy, we use the dynamic…

投资组合管理 · 定量金融 2025-05-21 Marcos Escobar-Anel , Yevhen Havrylenko , Rudi Zagst

In this paper, we study an optimal excess-of-loss reinsurance and investment problem for an insurer in defaultable market. The insurer can buy reinsurance and invest in the following securities: a bank account, a risky asset with stochastic…

投资组合管理 · 定量金融 2017-04-27 Nian Yao , Zhiming Yang

We assume that an individual invests in a financial market with one riskless and one risky asset, with the latter's price following a diffusion with stochastic volatility. In the current financial market especially, it is important to…

投资组合管理 · 定量金融 2011-05-06 Erhan Bayraktar , Xueying Hu , Virginia R. Young

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

投资组合管理 · 定量金融 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

This paper considers the portfolio management problem of optimal investment, consumption and life insurance. We are concerned with time inconsistency of optimal strategies. Natural assumptions, like different discount rates for consumption…

最优化与控制 · 数学 2011-07-25 Ivar Ekeland , Oumar Mbodji , Traian A. Pirvu

In this paper, we consider the problem of sensor selection for parameter estimation with correlated measurement noise. We seek optimal sensor activations by formulating an optimization problem, in which the estimation error, given by the…

We consider an investor, whose portfolio consists of a single risky asset and a risk free asset, who wants to maximize his expected utility of the portfolio subject to managing the Value at Risk (VaR) assuming a heavy tailed distribution of…

投资组合管理 · 定量金融 2020-12-02 Subhojit Biswas , Mrinal K. Ghosh , Diganta Mukherjee

This paper investigates the optimal control problem for a class of parabolic equations where the diffusion coefficient is influenced by a control function acting nonlocally. Specifically, we consider the optimization of a cost functional…

最优化与控制 · 数学 2025-03-11 Stefana-Lucia Anita , Luca Di Persio

This paper studies an $\alpha$-robust utility maximization problem where an investor faces an intractable claim -- an exogenous contingent claim with known marginal distribution but unspecified dependence structure with financial market…

投资组合管理 · 定量金融 2026-04-07 Xinyu Chen , Zuo Quan Xu

This paper considers the problem of optimal liquidation of a position in a risky security in a financial market, where price evolution are risky and trades have an impact on price as well as uncertainty in the filling orders. The problem is…

数理金融 · 定量金融 2019-07-16 Xue Cheng , Marina Di Giacinto , Tai-Ho Wang

In an equity market model with "Knightian" uncertainty regarding the relative risk and covariance structure of its assets, we characterize in several ways the highest return relative to the market that can be achieved using nonanticipative…

概率论 · 数学 2012-02-15 Daniel Fernholz , Ioannis Karatzas

The problem of optimal linear estimation of linear functionals depending on the unknown values of a periodically correlated stochastic process from observations of the process with additive noise is considered. Formulas for calculating the…

统计理论 · 数学 2025-10-29 Iryna Dubovets'ka , Mykhailo Moklyachuk