Dynamic coherent risk measures

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Dynamic coherent risk measures

Banks and regulatory agencies use monetary measures of risk to assess the risk taken by financial investors; important examples are given by the so–called Value at Risk and the class of Coherent Risk Measures. The existing risk measures are of a static, one period nature. In practice, however, portfolios consist, of course, of a variety of different assets and derivatives with distinct maturiti...

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Draft: Coherent Risk Measures

Part of the course was devoted to an analysis of Value at Risk and its relation to quantiles. A detailed discussion of this can be found in two papers by Artzner, Delbaen, Eber and Heath, ADEH1 and ADEH2. It will not be repeated here. We will rather concentrate on the mathematics behind the concept of coherent risk measures. They were introduced in the two mentioned papers and the mathematical ...

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Coherent Measures of Risk

In this paper we study both market risks and non-market risks, without complete markets assumption, and discuss methods of measurement of these risks. We present and justify a set of four desirable properties for measures of risk, and call the measures satisfying these properties “coherent”. We examine the measures of risk provided and the related actions required by SPAN, by the SEC/NASD rules...

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Convex and coherent risk measures

We discuss the quantification of financial risk in terms of monetary risk measures. Special emphasis is on dual representations of convex risk measures, relations to expected utility and other valuation concepts, conditioning, and consistency in discrete time.

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The paper considers modeling of risk-averse preferences in stochastic programming problems using risk measures. We utilize the axiomatic foundation of coherent risk measures and deviation measures in order to develop simple representations that express risk measures via specially constructed stochastic programming problems. Using the developed representations, we introduce a new family of highe...

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ژورنال

عنوان ژورنال: Stochastic Processes and their Applications

سال: 2004

ISSN: 0304-4149

DOI: 10.1016/j.spa.2004.03.004