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Autor principal: Pichler, Alois
Formato: Preprint
Publicado: 2024
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Acceso en línea:https://arxiv.org/abs/2402.15387
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author Pichler, Alois
author_facet Pichler, Alois
contents Higher order risk measures are stochastic optimization problems by design, and for this reason they enjoy valuable properties in optimization under uncertainties. They nicely integrate with stochastic optimization problems, as has been observed by the intriguing concept of the risk quadrangles, for example. Stochastic dominance is a binary relation for random variables to compare random outcomes. It is demonstrated that the concepts of higher order risk measures and stochastic dominance are equivalent, they can be employed to characterize the other. The paper explores these relations and connects stochastic orders, higher order risk measures and the risk quadrangle. Expectiles are employed to exemplify the relations obtained.
format Preprint
id arxiv_https___arxiv_org_abs_2402_15387
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Higher order measures of risk and stochastic dominance
Pichler, Alois
Risk Management
Optimization and Control
Portfolio Management
62G05, 62G08, 62G20
Higher order risk measures are stochastic optimization problems by design, and for this reason they enjoy valuable properties in optimization under uncertainties. They nicely integrate with stochastic optimization problems, as has been observed by the intriguing concept of the risk quadrangles, for example. Stochastic dominance is a binary relation for random variables to compare random outcomes. It is demonstrated that the concepts of higher order risk measures and stochastic dominance are equivalent, they can be employed to characterize the other. The paper explores these relations and connects stochastic orders, higher order risk measures and the risk quadrangle. Expectiles are employed to exemplify the relations obtained.
title Higher order measures of risk and stochastic dominance
topic Risk Management
Optimization and Control
Portfolio Management
62G05, 62G08, 62G20
url https://arxiv.org/abs/2402.15387