arXiv Open Access 2024

A note on robust convex risk measures

Marcelo Righi Fernanda Müller
Lihat Sumber

Abstrak

In this paper, we refine and generalize closed forms for worst-case law invariant convex risk measures with uncertainty sets based on: i) closed balls under $p$-norms and Wasserstein distance; and ii) moment constraints involving mean and variance. We also characterize the argmax of the worst-case problem in both settings. From such general results, we illustrate our framework by developing explicit closed forms for concrete examples of convex risk measures. Furthermore, we use extensive numerical simulations in order to assess the impact of robustness on capital determination and portfolio optimization.

Topik & Kata Kunci

Penulis (2)

M

Marcelo Righi

F

Fernanda Müller

Format Sitasi

Righi, M., Müller, F. (2024). A note on robust convex risk measures. https://arxiv.org/abs/2406.12999

Akses Cepat

Lihat di Sumber
Informasi Jurnal
Tahun Terbit
2024
Bahasa
en
Sumber Database
arXiv
Akses
Open Access ✓