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We study the problem of optimal portfolio selection under stochastic volatility within a continuous time reinforcement learning framework with portfolio constraints. Exploration is modeled through entropy-regularized relaxed controls, where…

数理金融 · 定量金融 2026-04-27 Thai Nguyen , Pertiny Nkuize

In this paper, we consider the portfolio optimization problem in a financial market under a general utility function. Empirical results suggest that if a significant market fluctuation occurs, invested wealth tends to have a notable change…

投资组合管理 · 定量金融 2022-01-26 Minglian Lin , Indranil SenGupta

We study an optimal investment and consumption problem over a finite-time horizon, in which an individual invests in a risk-free asset and a risky asset, and evaluate utility using a general utility function that exhibits loss aversion with…

最优化与控制 · 数学 2025-07-08 Chonghu Guan , Xinfeng Gu , Wenhao Zhang , Xun Li

In this article, we analyse optimal statistical arbitrage strategies from stochastic control and optimisation problems for multiple co-integrated stocks with eigenportfolios being factors. Optimal portfolio weights are found by solving a…

投资组合管理 · 定量金融 2022-02-09 T. N. Li , A. Papanicolaou

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

This paper presents a new methodology to craft navigation functions for nonlinear systems with stochastic uncertainty. The method relies on the transformation of the Hamilton-Jacobi-Bellman (HJB) equation into a linear partial differential…

机器人学 · 计算机科学 2014-09-23 Matanya B. Horowitz , Joel W. Burdick

An optimal control problem is considered for a stochastic differential equation containing a state-dependent regime switching, with a recursive cost functional. Due to the non-exponential discounting in the cost functional, the problem is…

最优化与控制 · 数学 2017-12-29 Hongwei Mei , Jiongmin Yong

We consider a model of optimal investment and consumption with both habit formation and partial observations in incomplete It\^{o} processes market. The investor chooses his consumption under the addictive habits constraint while only…

投资组合管理 · 定量金融 2014-08-12 Xiang Yu

Environmental management optimizing a long-run objective is an ergodic control problem whose resolution can be achieved by solving an associated non-local Hamilton-Jacobi-Bellman (HJB) equation having an effective Hamiltonian. Focusing on…

最优化与控制 · 数学 2022-05-11 Hidekazu Yoshioka , Motoh Tsujimura , Yuta Yaegashi

We consider the mean--variance portfolio optimization problem under the game theoretic framework and without risk-free assets. The problem is solved semi-explicitly by applying the extended Hamilton--Jacobi--Bellman equation. Although the…

投资组合管理 · 定量金融 2016-02-17 Chi Kin Lam , Yuhong Xu , Guosheng Yin

In this note, we study a class of indefinite stochastic McKean-Vlasov linear-quadratic (LQ in short) control problem under the control taking nonnegative values. In contrast to the conventional issue, both the classical dynamic programming…

最优化与控制 · 数学 2023-10-05 Xun Li , Liangquan Zhang

We study the problem of utility maximization from terminal wealth in which an agent optimally builds her portfolio by investing in a bond and a risky asset. The asset price dynamics follow a diffusion process with regime-switching…

投资组合管理 · 定量金融 2018-04-24 Adriana Ocejo

This paper concerns the numerical solution of a fully nonlinear parabolic double obstacle problem arising from a finite portfolio selection with proportional transaction costs. We consider the optimal allocation of wealth among multiple…

投资组合管理 · 定量金融 2017-11-06 Arash Fahim , Wan-Yu Tsai

This paper considers a utility maximization and optimal asset allocation problem in the presence of a stochastic endowment that cannot be fully hedged through trading in the financial market. After studying continuity properties of the…

投资组合管理 · 定量金融 2022-02-24 Christoph Belak , An Chen , Carla Mereu , Robert Stelzer

In this article, we provide a numerical method based on fitted finite volume method to approximate the Hamilton-Jacobi-Bellman (HJB) equation coming from stochastic optimal control problems. The computational challenge is due to the nature…

数值分析 · 数学 2020-02-21 Christelle Dleuna Nyoumbi , Antoine Tambue

In this paper we study the fully nonlinear stochastic Hamilton-Jacobi-Bellman (HJB) equation for the optimal stochastic control problem of stochastic differential equations with random coefficients. The notion of viscosity solution is…

最优化与控制 · 数学 2018-07-16 Jinniao Qiu

We develop a discrete analogue of Hamilton-Jacobi theory in the framework of discrete Hamiltonian mechanics. The resulting discrete Hamilton-Jacobi equation is discrete only in time. We describe a discrete analogue of Jacobi's solution and…

最优化与控制 · 数学 2011-08-15 Tomoki Ohsawa , Anthony M. Bloch , Melvin Leok

The purpose of this paper is to describe the numerical solution of the Hamilton-Jacobi-Bellman (HJB) for an optimal control problem for quantum spin systems. This HJB equation is a first order nonlinear partial differential equation defined…

量子物理 · 物理学 2011-10-05 Srinivas Sridharan , Matthew R. James

We consider a stock that follows a geometric Brownian motion (GBM) and a riskless asset continuously compounded at a constant rate. We assume that the stock can go bankrupt, i.e., lose all of its value, at some exogenous random time…

数理金融 · 定量金融 2024-11-05 Yaacov Kopeliovich , Michael Pokojovy , Julia Bernatska

This paper proposes two algorithms for solving stochastic control problems with deep learning, with a focus on the utility maximisation problem. The first algorithm solves Markovian problems via the Hamilton Jacobi Bellman (HJB) equation.…

计算金融 · 定量金融 2024-10-15 Ashley Davey , Harry Zheng