Saddle points for maximin investment problems with observable but non-predictable parameters: solution via heat equation.

We study optimal investment problem for a market model where the evolution of risky assets prices is described by Itoˆs equations. The risk-free rate, the appreciation rates, and the volatility of the stocks are all random; they depend on a random parameter that is not adapted to the driving Brownia...

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Bibliographic Details
Main Author: Dokuchaev, Nikolai
Format: Journal Article
Published: Oxford University Press 2006
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/41201