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CORDIS - Forschungsergebnisse der EU
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Optimal Portfolios with Random Environments, Frictions and Incentives

Ziel

This project focuses on a class of portfolio choice problems arising in Mathematical Finance. These problems share a common relevance for financial applications, and lead to novel mathematical questions, mainly in the area of Stochastic Processes. Research is proposed on dynamic portfolio choice with: (i) Random Environments; (ii) Trading Frictions; and (iii) Incentive Fees. Random environments encompass those asset pricing models in which interest rates, risk premia, and covariances may depend on state variables. These model are important because recent empirical investigations show that variables such as the dividend yield, or earnings/price ratios drive expected returns, paving the way to multifactor models. Transaction costs lead to similar technical questions, although for conceptually different reasons. State variables arise in these models implicitly, through the notion of shadow prices. This partial isomorphism between market frictions and random environments suggests that transaction costs have an hidden potential as tools for explaining pricing anomalies. Incentive fees, traditionally neglected as minor imperfections, are now actively studied for their role in shaping the behavior of intermediaries. For example, high-water mark contracts, now prevalent in the hedge-fund industry, have ambiguous effects on fund managers. Understanding these effects is crucial for evaluating the potential consequences of regulation. In summary, the proposed problems share a common relevance, and similar technical features, which require novel mathematical tools. This project aims at developing these tools, and at bringing to life their implications.

Wissenschaftliches Gebiet (EuroSciVoc)

CORDIS klassifiziert Projekte mit EuroSciVoc, einer mehrsprachigen Taxonomie der Wissenschaftsbereiche, durch einen halbautomatischen Prozess, der auf Verfahren der Verarbeitung natürlicher Sprache beruht. Siehe: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.

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Aufforderung zur Vorschlagseinreichung

FP7-PEOPLE-2009-RG
Andere Projekte für diesen Aufruf anzeigen

Finanzierungsplan

MC-IRG -

Koordinator

DUBLIN CITY UNIVERSITY
EU-Beitrag
€ 100 000,00
Adresse
Glasnevin
9 Dublin
Irland

Auf der Karte ansehen

Region
Ireland Eastern and Midland Dublin
Aktivitätstyp
Mittlere und höhere Bildungseinrichtungen
Links
Gesamtkosten
Keine Daten