• DocumentCode
    2543847
  • Title

    Analysis of expected utility toward fuzzy random wealth and its application in portfolio selection

  • Author

    You, Surong ; Tan, Lulu

  • Author_Institution
    Coll. of Sci., Donghua Univ., Shanghai, China
  • fYear
    2012
  • fDate
    29-31 May 2012
  • Firstpage
    433
  • Lastpage
    437
  • Abstract
    An expected utility model is proposed to measure the utility toward fuzzy random wealth. Some properties and concepts, such as increasing, concaveness and certainty equivalence are analyzed. Based on maximizing the expected utility, two models are given to consider how to form an optimal portfolio. The first problem is to invest between a riskless asset and an uncertainty asset with fuzzy random value. The second problem deals with investing among a set of fuzzy random assets under short-selling prohibition. Some properties on the optimal portfolio are discussed.
  • Keywords
    fuzzy set theory; investment; optimisation; random processes; utility theory; expected utility model; fuzzy random assets; fuzzy random value; fuzzy random wealth; maximization; optimal portfolio; riskless asset; uncertainty asset; Educational institutions; Erbium; Portfolios; Programming; Random variables; Security; Uncertainty; expected utility; fuzzy random variable; portfolio selection;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Fuzzy Systems and Knowledge Discovery (FSKD), 2012 9th International Conference on
  • Conference_Location
    Sichuan
  • Print_ISBN
    978-1-4673-0025-4
  • Type

    conf

  • DOI
    10.1109/FSKD.2012.6233875
  • Filename
    6233875