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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

This article constructs a forward exponential utility in a market with multiple defaultable risks. Using the Jacod-Pham decomposition for random fields, we first characterize forward performance processes in a defaultable market under the…

数理金融 · 定量金融 2026-01-06 Wing Fung Chong , Roxana Dumitrescu , Gechun Liang , Kenneth Tsz Hin Ng

We consider an energy storage problem involving a wind farm with a forecasted power output, a stochastic load, an energy storage device, and a connection to the larger power grid with stochastic prices. Electricity prices and wind power…

最优化与控制 · 数学 2020-02-04 Joseph L. Durante , Juliana Nascimento , Warren B. Powell

This paper is concerned with asymptotic behavior of a variety of functionals of increments of continuous semimartingales. Sampling times are assumed to follow a rather general discretization scheme. If an underlying semimartingale is…

概率论 · 数学 2024-10-04 Michael Levine , Xiaoguang Wang , Jian Frank Zou

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. Given multiple traded assets, the prices of which depend on multiple observable stochastic factors, we construct a…

数理金融 · 定量金融 2018-05-15 Levon Avanesyan , Mykhaylo Shkolnikov , Ronnie Sircar

We introduce the concept of forward rank-dependent performance processes, extending the original notion to forward criteria that incorporate probability distortions. A fundamental challenge is how to reconcile the time-consistent nature of…

数理金融 · 定量金融 2019-04-04 Xue Dong He , Moris S. Strub , Thaleia Zariphopoulou

We consider a fractional version of the Heston volatility model which is inspired by [16]. Within this model we treat portfolio optimization problems for power utility functions. Using a suitable representation of the fractional part,…

投资组合管理 · 定量金融 2019-05-17 Nicole Bäuerle , Sascha Desmettre

We study utility maximization problem for general utility functions using dynamic programming approach. We consider an incomplete financial market model, where the dynamics of asset prices are described by an $R^d$-valued continuous…

概率论 · 数学 2008-12-10 M. Mania , R. Tevzadze

We address a portfolio selection problem that combines active (outperformance) and passive (tracking) objectives using techniques from convex analysis. We assume a general semimartingale market model where the assets' growth rate processes…

投资组合管理 · 定量金融 2019-03-19 Ali Al-Aradi , Sebastian Jaimungal

The problem of portfolio optimization when stochastic factors drive returns and volatilities has been studied in previous works by the authors. In particular, they proposed asymptotic approximations for value functions and optimal…

数理金融 · 定量金融 2021-10-15 Jean-Pierre Fouque , Ruimeng Hu , Ronnie Sircar

In this paper, We propose a new style panel data factor stochastic volatility model with observable factors and unobservable factors based on the multivariate stochastic volatility model, which is mainly composed of three parts, such as the…

统计方法学 · 统计学 2019-04-09 Guobin Fang , Huimin Ma , Michelle Xia , Bo Zhang

In an incomplete market, with incompleteness stemming from stochastic factors imperfectly correlated with the underlying stocks, we derive representations of homothetic (power, exponential and logarithmic) forward performance processes in…

数理金融 · 定量金融 2016-11-18 Gechun Liang , Thaleia Zariphopoulou

We investigate Wiener-transformable markets, where the driving process is given by an adapted transformation of a Wiener process. This includes processes with long memory, like fractional Brownian motion and related processes, and, in…

概率论 · 数学 2018-08-30 Elena Boguslavskaya , Yuliya Mishura , Georgiy Shevchenko

Affine processes play an important role in mathematical finance and other applied areas due to their tractable structure. In the present article, we derive probabilistic representations and integration by parts (IBP) formulas for…

概率论 · 数学 2026-02-25 Arturo Kohatsu-Higa , Yuma Tamura

In this article, we study optimal investment and consumption in an incomplete stochastic factor model for a power utility investor on the infinite horizon. When the state space of the stochastic factor is finite, we give a complete…

数理金融 · 定量金融 2025-09-12 Florian Gutekunst , Martin Herdegen , David Hobson

In this paper we study the forward integral of operator-valued processes with respect to a cylindrical Brownian motion. In particular, we provide conditions under which the approximating sequence of processes of the forward integral,…

概率论 · 数学 2014-08-29 Matthijs Pronk , Mark Veraar

While absence of arbitrage in frictionless financial markets requires price processes to be semimartingales, non-semimartingales can be used to model prices in an arbitrage-free way, if proportional transaction costs are taken into account.…

数理金融 · 定量金融 2016-08-30 Christoph Czichowsky , Walter Schachermayer

Stochastic integrals are defined with respect to a collection $P = (P_i; \, i \in I)$ of continuous semimartingales, imposing no assumptions on the index set $I$ and the subspace of $\mathbb{R}^I$ where $P$ takes values. The integrals are…

概率论 · 数学 2019-08-20 Constantinos Kardaras

We consider the problem of maximising expected utility from terminal wealth in a semimartingale setting, where the semimartingale is written as a sum of a time-changed Brownian motion and a finite variation process. To solve this problem,…

概率论 · 数学 2024-07-04 Giulia Di Nunno , Hannes Haferkorn , Asma Khedher , Michèle Vanmaele

We consider a class of semi-Markov processes (SMP) such that the embedded discrete time Markov chain may be non-homogeneous. The corresponding augmented processes are represented as semi-martingales using stochastic integral equation…

概率论 · 数学 2022-07-14 Anindya Goswami , Subhamay Saha , Ravishankar Kapildev Yadav