Do jumps matter in discrete-time portfolio optimization?

This paper studies a discrete-time portfolio optimization problem, wherein the underlying risky asset follows a Lévy GARCH model. Besides a Gaussian noise, the framework allows for various jump increments, including infinite-activity jumps. Using a dynamic programming approach and exploiting the aff...

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Bibliographic Details
Main Authors: Marcos Escobar-Anel, Ben Spies, Rudi Zagst
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Operations Research Perspectives
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2214716024000162
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