- Author
- Trzpiot Grażyna (University of Economics in Katowice, Poland)
- Title
- Application of Coherent Distortion Risk Measures
- Source
- Statistics in Transition, 2014, vol. 15, nr 2, s. 283-298, bibliogr. 22 poz.
- Keyword
- Pomiar ryzyka, Metody pomiarowe, Statystyka gospodarcza
Risk measures, Measuring methods, Economic statistics - Note
- Materiały z konferencji Multivariate Statistical Analysis 2013, Łódź.
summ. - Abstract
- This paper concentrates on solving the portfolio selection problem. It starts with an extension of the well-known optimization framework for Conditional Value-at-Risk (CVaR)-based portfolio selection problems [1, 2] to optimization over a more general class of risk measure - known as the class of Coherent Distortion Risk Measure (CDRM). The CDRM class of risk measures is the intersection of Coherent Risk Measure (CRM) and Distortion Risk Measure (DRM). It concludes with showing that many of the well-known risk measures are of special cases of the CDRM class what may facilitate to deal with the portfolio optimization problem. (original abstract)
- Accessibility
- The Main Library of the Cracow University of Economics
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of the Wroclaw University of Economics - Full text
- Show
- Bibliography
- ARTZNER, P., DELBAEN F., EBER J. M., HEATH, D., (1999). Coherent measures of risk. Mathematical finance, 9(3):203-228.
- BAWA, V. S., LINDENBERG E. B., (1977). Capital market equilibrium in a mean-lower partial moment framework. Journal of Financial Economics, 5(2): 189- 200.
- BERTSIMAS, D. D. B., (2009). Brown, Constructing uncertainty sets for robust linear optimization. Operations research, 57(6): 1483- 1495.
- DENNEBERG, D., (1994). Non-additive measure and integral. Kluwer, Dordrecht.
- DHAENE, J., WANG, S. S., YOUNG, V. R., GOOVAERTS, M. J., (2000). Comonotonicity and maximal stop-loss premiums. Bulletin of the Swiss Association of Actuaries, 2:99-113.
- FENG, M. B., TAN, K. S., (2012). Coherent Distortion Risk Measures in Portfolio Selection, System Engineering Procedia 4, 25-34.
- HADAR, J., RUSSELL, W., (1969). Rules for ordering uncertain prospects, American Economic Review 59, 25-34.
- HARVEY, C. R. J., LIECHTY, M., LIECHTY, P., (2010). Müller. Portfolio selection with higher moments. Quantitative Finance, 10(5):469-485.
- KUSUOKA, S., (2001). On law invariant coherent risk measures. Advances in mathematical economics, 3:83-95.
- MARKOWITZ, H. M., (1952). Portfolio selection. The Journal of Finance, 7(1):77-91.
- MARKOWITZ, H. M., (1959). Portfolio selection: efficient diversification of investments. New Haven, CT: Cowles Foundation, 94.
- ORTOBELLI, S., (2001). The classification of parametric choices under uncertainty: analysis of the portfolio choice problem, Theory and Decision 51, 297-327.
- ORTOBELLI, S., RACHEV, S., SHALIT, H., FABOZZI, F., (2006). Risk probability function- analysis and probability metrics applied to portfolio theory, http://www.statistik.unikarlsruhe .de.
- ROCKAFELLAR, R. T., URYASEV, S., (2002). Conditional value-at-risk for general loss distributions. Journal of Banking & Finance, 26(7):1443-1471.
- ROCKAFELLAR, R. T., URYASEV, S., (2000). Optimization of conditional value-at-risk. Journal of risk, 2:21-42.
- ROTHSCHILD, M., STIGLITZ, J., (1970). Increasing risk. I.a. definition, Journal of Economic Theory 2, 225-243.
- ROY, A. D., (1952). Safety first and the holding of assets. Econometrica: Journal of the Econometric Society, pages 431-449.
- TRZPIOT, G., (2005). Partial Moments and Negative Moments in Ordering Asymmetric Distribution, in: Daniel Baier and Klaus- Dieter Wernecke (eds.): Innovations in Classification, Data Science and Information Systems, Proc. 27th Annual GFKL Conference, University of Cottbus, March 11-14 2003. Springer-Verlag, Heidelberg-Berlin, 181-188.
- TRZPIOT, G., (2010). Pesymistyczna optymalizacja portfelowa [Pessimistic portfolio optimization], In: Modelling of preferences and risk '09, Scientific Papers, University of Economics in Katowice, 121-128
- TRZPIOT, G., (2012). Własności transformujących miar ryzyka [Properties of transforming risk measures], Economic Studies of the University of Economics in Katowice - Faculty Scientific Papers No. 91, Katowice, 21-36
- WANG, S. S., (2000). A class of distortion operators for pricing financial and insurance risks. The Journal of Risk and Insurance, 67(1): 15-36.
- WIRCH, J., HARDY, M. R., (2001). Distortion risk measures: coherence and stochastic dominance. Working paper.
- Cited by
- ISSN
- 1234-7655
- Language
- eng