Multiperiod mean-CVaR portfolio selection

  • Xiangyu Cui
  • , Yun Shi*
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

Due to the time inconsistency issue of multiperiod mean- CVaR model, two important policies of the model with finite states, the pre-committed policy and the time consistent policy, are derived and discussed. The pre-committed policy, which is global optimal for the model, is solved through linear programming. A detailed analysis shows that the pre-committed policy doesn’t satisfy time consistency in efficiency either, i.e., the truncated pre-committed policy is not efficient for the remaining short term mean-CVaR problem. The time consistent policy, which is the subgame Nash equilibrium policy of the multiperson game reformulation of the model, takes a piecewise linear form of the current wealth level and the coefficients can be derived by a series of integer programming problems and two linear programming problems. The difference between two polices indicates the degree of time inconsistency.

Original languageEnglish
Title of host publicationModelling, Computation and Optimization in Information Systems and Management Sciences - Proceedings of the 3rd International Conference on Modelling, Computation and Optimization in Information Systems and Management Sciences, MCO 2015
EditorsNgoc Thanh Nguyen, Hoai An Le Thi, Tao Pham Dinh
PublisherSpringer Verlag
Pages293-304
Number of pages12
ISBN (Print)9783319181608
DOIs
StatePublished - 2015
Externally publishedYes
Event3rd International Conference on Modelling, Computation and Optimization in Information Systems and Management Sciences, MCO 2015 - Nancy, France
Duration: 11 May 201513 May 2015

Publication series

NameAdvances in Intelligent Systems and Computing
Volume359
ISSN (Print)2194-5357

Conference

Conference3rd International Conference on Modelling, Computation and Optimization in Information Systems and Management Sciences, MCO 2015
Country/TerritoryFrance
CityNancy
Period11/05/1513/05/15

Keywords

  • Integer programming
  • Linear programming
  • Mean-CVaR
  • Pre-committed policy
  • Time consistency in efficiency
  • Time consistent policy

Fingerprint

Dive into the research topics of 'Multiperiod mean-CVaR portfolio selection'. Together they form a unique fingerprint.

Cite this