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We study the Merton portfolio management problem within a complete market, non constant time discount rate and general utility framework. The non constant discount rate introduces time inconsistency which can be solved by introducing sub…

投资组合管理 · 定量金融 2026-02-23 Oumar Mbodji

We investigate the portfolio selection problem for an agent with rank-dependent utility in an incomplete financial market. For a constant-coefficient market and CRRA utilities, we characterize the deterministic strict equilibrium…

数理金融 · 定量金融 2024-10-01 Jiaqin Wei , Jianming Xia , Qian Zhao

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

This paper investigates a time-inconsistent portfolio selection problem in the incomplete mar ket model, integrating expected utility maximization with risk control. The objective functional balances the expected utility and variance on log…

投资组合管理 · 定量金融 2025-12-02 Yue Cao , Zongxia Liang , Sheng Wang , Xiang Yu

The aim of this work consists in the study of the optimal investment strategy for a behavioural investor, whose preference towards risk is described by both a probability distortion and an S-shaped utility function. Within a continuous-time…

投资组合管理 · 定量金融 2013-04-30 Miklos Rasonyi , Andrea M. Rodrigues

This paper introduces a novel stochastic control framework to enhance the capabilities of automated investment managers, or robo-advisors, by accurately inferring clients' investment preferences from past activities. Our approach leverages…

最优化与控制 · 数学 2024-06-05 Haoyang Cao , Zhengqi Wu , Renyuan Xu

The paper [12] examines a concept of equilibrium policies instead of optimal controls in stochastic optimization to analyze a mean-variance portfolio selection problem. We follow the same approach in order to investigate the Merton…

最优化与控制 · 数学 2020-04-23 I. Alia , F. Chighoub , N. Khelfallah , J. Vives

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

Merton portfolio management problem is studied in this paper within a stochastic volatility, non constant time discount rate, and power utility framework. This problem is time inconsistent and the way out of this predicament is to consider…

投资组合管理 · 定量金融 2024-02-09 Oumar Mbodji , Traian A. Pirvu

In this paper we study the optimal investment and reinsurance problem of an insurance company whose investment preferences are described via a forward dynamic exponential utility in a regime-switching market model. Financial and actuarial…

投资组合管理 · 定量金融 2021-06-29 Katia Colaneri , Alessandra Cretarola , Benedetta Salterini

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

This paper studies a continuous-time market {under stochastic environment} where an agent, having specified an investment horizon and a target terminal mean return, seeks to minimize the variance of the return with multiple stocks and a…

投资组合管理 · 定量金融 2013-02-28 Wan-Kai Pang , Yuan-Hua Ni , Xun Li , Ka-Fai Cedric Yiu

In this paper, we investigate the Merton portfolio management problem in the context of non-exponential discounting. This gives rise to time-inconsistency of the decision-maker. If the decision-maker at time t=0 can commit his/her…

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

We consider a continuous-time game-theoretic model of an investment market with short-lived assets and endogenous asset prices. The first goal of the paper is to formulate a stochastic equation which determines wealth processes of investors…

数理金融 · 定量金融 2020-09-01 Mikhail Zhitlukhin

In this paper we derive the exact solution of the multi-period portfolio choice problem for an exponential utility function under return predictability. It is assumed that the asset returns depend on predictable variables and that the joint…

投资组合管理 · 定量金融 2023-04-19 Taras Bodnar , Nestor Parolya , Wolfgang Schmid

This paper investigates portfolio selection within a continuous-time financial market with regime-switching and beliefs-dependent utilities. The market coefficients and the investor's utility function both depend on the market regime, which…

最优化与控制 · 数学 2024-10-23 Xiaochen Chen , Guohui Guan , Zongxia Liang

This paper discusses a nonlinear integral equation arising from portfolio selection with a class of time-inconsistent preferences. We propose a unified framework requiring minimal assumptions, such as right-continuity of market coefficients…

数理金融 · 定量金融 2025-01-20 Zongxia Liang , Sheng Wang , Jianming Xia

We study a continuous-time portfolio choice problem for an investor whose state-dependent preferences are determined by an exogenous factor that evolves as an It\^o diffusion process. Since risk attitudes at the end of the investment…

数理金融 · 定量金融 2025-12-25 Luca De Gennaro Aquino , Sascha Desmettre , Yevhen Havrylenko , Mogens Steffensen

The comparative statics of the optimal portfolios across individuals is carried out for a continuous-time complete market model, where the risky assets price process follows a joint geometric Brownian motion with time-dependent and…

投资组合管理 · 定量金融 2012-01-04 Jianming Xia

The classical Merton investment problem predicts deterministic, state-dependent portfolio rules; however, laboratory and field evidence suggests that individuals often prefer randomized decisions leading to stochastic and noisy choices.…

数理金融 · 定量金融 2026-02-17 Min Dai , Yuchao Dong , Yanwei Jia , Xun Yu Zhou
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