[HTML][HTML] Numerical methods for portfolio selection with bounded constraints

G Yin, H Jin, Z Jin - Journal of computational and Applied Mathematics, 2009 - Elsevier
Journal of computational and Applied Mathematics, 2009Elsevier
This work develops an approximation procedure for portfolio selection with bounded
constraints. Based on the Markov chain approximation techniques, numerical procedures
are constructed for the utility optimization task. Under simple conditions, the convergence of
the approximation sequences to the wealth process and the optimal utility function is
established. Numerical examples are provided to illustrate the performance of the
algorithms.
This work develops an approximation procedure for portfolio selection with bounded constraints. Based on the Markov chain approximation techniques, numerical procedures are constructed for the utility optimization task. Under simple conditions, the convergence of the approximation sequences to the wealth process and the optimal utility function is established. Numerical examples are provided to illustrate the performance of the algorithms.
Elsevier
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