Optimal solution of investment problems via linear parabolic equations generated by Kalman filter

We consider optimal investment problems for a diffusion market model with non-observable random drifts that evolve as an Ito's process. Admissible strategies do not use direct observations of the market parameters, but rather use historical stock prices. For a non-linear problem with a general...

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Bibliographic Details
Main Author: Dokuchaev, Nikolai
Format: Journal Article
Published: SIAM Publications 2005
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/25971