Portfolio Management Problem with Stochastic Wage Income and Inflation-Adjusted Wealth

In this paper, the portfolio management problem with stochastic wage income and inflation risk for CRRA investors is solved. real life, experience risk. This could be due to events such as COVID-19, fiscal policy, financial policy adjustments, climate change. We consider an agent who invests in market one risk-free security (e.g. a money account or bond) risky stock index). Our goal choose optimal controls that maximize objective function order obtain value function. By applying Dynamic Programming Principle, we determine HJB PDE. Solving PDE, establish controls.