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Numerical Solution of Dynamic Portfolio Optimization with Transaction Costs / Yongyang Cai, Kenneth L. Judd, Rong Xu.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cai, Yongyang.
Contributor:
National Bureau of Economic Research.
Judd, Kenneth L.
Xu, Rong.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18709.
NBER working paper series no. w18709
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2013.
Summary:
We apply numerical dynamic programming to multi-asset dynamic portfolio optimization problems with proportional transaction costs. Examples include problems with one safe asset plus two to six risky stocks, and seven to 360 trading periods in a finite horizon problem. These examples show that it is now tractable to solve such problems.
Notes:
Print version record
January 2013.

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