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We consider optimal consumption and portfolio choice in the presence of Knightian uncertainty in continuous-time. We embed the problem into the new framework of stochastic calculus for such settings, dealing in particular with the issue of…

投资组合管理 · 定量金融 2014-01-09 Qian Lin , Frank Riedel

This paper studies the problem of optimal investment in incomplete markets, robust with respect to stopping times. We work on a Brownian motion framework and the stopping times are adapted to the Brownian filtration. Robustness can only be…

概率论 · 数学 2008-12-02 Traian A Pirvu , Ulrich G Haussmann

In a fixed time horizon, appropriately executing a large amount of a particular asset -- meaning a considerable portion of the volume traded within this frame -- is challenging. Especially for illiquid or even highly liquid but also highly…

数理金融 · 定量金融 2023-08-15 David Evangelista , Yuri Thamsten

We present a robust version of the life-cycle optimal portfolio choice problem in the presence of labor income, as introduced in Biffis, Gozzi and Prosdocimi ("Optimal portfolio choice with path dependent labor income: the infinite horizon…

最优化与控制 · 数学 2022-03-08 Sara Biagini , Fausto Gozzi , Margherita Zanella

We study an optimal dividend problem under a bankruptcy constraint. Firms face a trade-off between potential bankruptcy and extraction of profits. In contrast to previous works, general cash flow drifts, including Ornstein--Uhlenbeck and…

最优化与控制 · 数学 2018-03-05 Max Reppen , Jean-Charles Rochet , H. Mete Soner

In this paper, we consider a financial market with assets exposed to some risks inducing jumps in the asset prices, and which can still be traded after default times. We use a default-intensity modeling approach, and address in this…

投资组合管理 · 定量金融 2015-10-21 Thomas Lim , Marie-Claire Quenez

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

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 paper considers optimal control problem of a large insurance company under a fixed insolvency probability. The company controls proportional reinsurance rate, dividend pay-outs and investing process to maximize the expected present…

风险管理 · 定量金融 2010-06-01 Zongxia Liang , Jianping Huang

In this paper we investigate a utility maximization problem with drift uncertainty in a multivariate continuous-time Black-Scholes type financial market which may be incomplete. We impose a constraint on the admissible strategies that…

投资组合管理 · 定量金融 2021-11-04 Jörn Sass , Dorothee Westphal

We adress the maximization problem of expected utility from terminal wealth. The special feature of this paper is that we consider a financial market where the price process of risky assets can have a default time. Using dynamic…

计算金融 · 定量金融 2010-07-13 Thomas Lim , Marie-Claire Quenez

This paper derives a portfolio decomposition formula when the agent maximizes utility of her wealth at some finite planning horizon. The financial market is complete and consists of multiple risky assets (stocks) plus a risk free asset. The…

概率论 · 数学 2008-12-02 Traian A Pirvu , Ulrich G Haussmann

In this paper we address the problem of optimal liquidation of a large portfolio composed by securities exposed to default risk. The default time is described in terms of a Brownian motion representing the evolution of the value of the…

最优化与控制 · 数学 2026-02-03 Daniel Hernández-Hernńdez , Harold A. Moreno-Franco , José-Luis Pérez

Equity premium, the surplus returns of stocks over bonds, has been an enduring puzzle. While numerous prior works approach the problem assuming the utility of money is invariant across contexts, our approach implies that in efficient…

综合经济学 · 经济学 2024-01-18 B. N. Kausik

Motivated by recent axiomatic developments, we study the risk- and ambiguity-averse investment problem where trading takes place over a fixed finite horizon and terminal payoffs are evaluated according to a criterion defined in terms of a…

投资组合管理 · 定量金融 2013-12-02 Sigrid Källblad

We consider a standard optimal investment problem in a complete financial market driven by a Wiener process and derive an explicit formula for the optimal portfolio process in terms of the vertical derivative from functional It^o calculus.…

数理金融 · 定量金融 2018-01-01 Kristoffer Lindensjö

We present an optimal investment theorem for a currency exchange model with random and possibly discontinuous proportional transaction costs. The investor's preferences are represented by a multivariate utility function, allowing for…

概率论 · 数学 2009-04-08 Luciano Campi , Mark P. Owen

We consider a semilinear equation linked to the finite horizon consumption - investment problem under the stochastic factor framework and we prove it admits a classical solution and provide all obligatory estimates to successfully apply a…

最优化与控制 · 数学 2021-04-28 Dariusz Zawisza

We address the problem of portfolio optimization under the simplest coherent risk measure, i.e. the expected shortfall. As it is well known, one can map this problem into a linear programming setting. For some values of the external…

物理与社会 · 物理学 2008-12-02 Stefano Ciliberti , Imre Kondor , Marc Mezard

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