Evolutionary investment strategies have been found to adapt distribution of investors’ fund to technological changes of economic industries. In this paper we use evolutionary algorithm (EA) to improve investment strategies in economic system comparing shares of most profitable investors with other ones. Proposed algorithm selects an optimal combination of investment share in different industrie...

In this paper, we present an adaptive investment strategy for environments with periodic returns on investment. In our approach, we consider an investment model where the agent decides at every time step the proportion of wealth to invest in a risky asset, keeping the rest of the budget in a risk-free asset. Every investment is evaluated in the market via a stylized return on investment functio...

Cloud computing is becoming more and more popular and has received considerable attention recently. As a new kind of Information Technology (IT) commercial model, understanding the economics of cloud computing becomes critically important. From the cloud service providers’ perspective, profit maximization is the top issue for them. Because a multi-server system is devoted to serving one type of...

In 1981, Paris and Wilkie [28] indicated it was an open question whether IΣ0 would satisfy the Second Incompleteness Theorem for Herbrand deduction. We will show that some specially formulated axiomizations for IΣ0 can evade the Herbrandized version of the Second Incompleteness Theorem.

Applications of Machine Learning (ML) to stock market analysis include Portfolio Optimization, Investment Strategy Determination, and Market Risk Analysis. This paper focuses on the problem of Investment Strategy Determination through the use of reinforcement learning techniques. Four techniques, two based on Recurrent Reinforcement Learning (RLL) and two based on Q-learning, were utilized. Q-l...

My original assignment was first to evaluate Larry Summers’ paper as a description of the current state of the art regarding investment behavior and second to determine the adequacy of the investment sector of Michael Evans’ econometric model (Evans, 1980) in light of Summers’ paper. The late arrival of Larry’s paper forced me to alter my strategy, and it is just as well. Summers’ investment fu...

Criminal psychology evaluation is too comprehensive to be easily made, but here the optimal investment strategy is proposed to solve this kind of problem in criminal psychology from the view of subjective fault. First, the investment strategy of subjective fault is modeled by the risk measurement of boundary value, and the complex strategy selection process subjective fault is analyzed. The psy...

Assume that (c, (x, z)) is a feasible strategy for initial conditions (Wt, Yt). Then, for all α > 0, we first show that (αc, (αx, αz)) is a feasible strategy for initial conditions (αWt, αYt). Consider the dynamics for the wealth process Wα, with initial conditions (αWt, αYt), following the consumption and investment plan (αc, (αx, αz)). We have dWαs = αWsds− αcsds+ αYsds+ αz ⊺ s (μ− r1)ds+ αz ...

We model the capacity investment problem faced by pharmaceutical firms and other firms with long and risky product development cycles. These firms must balance two conflicting objectives: on one hand, the delay in scaling-up production once the product is approved must be minimized, and on the other hand, the risk of investing in ultimately unused capacity must be minimized. We develop a styliz...

Risk shifting is a well-known agency problem in corporate finance which also exists between policyholders and shareholders of insurance companies. Shareholders engage in excessive risk taking at the expense of policyholders who, in turn, are less willing to pay for insurance coverage. Solvency regulation addresses this incentive problem by restricting the set of investment strategies and premiu...