We consider the problem of optimal investment and consumption when the investment opportunity is represented by a hedge-fund charging proportional fees on profit. The value of the fund evolves as a geometric Brownian motion and the performance of the investment and consumption strategy is measured using discounted power utility from consumption on infinite horizon. The resulting stochastic cont...

Developing a complex software system involves decisions about how to allocate a limited resource budget among a collection of costly software alternatives (such as technologies or analysis techniques) that have uncertain future benefits. Very little quantitative guidance is currently available to make these decisions. We suggest that these allocation problems are naturally viewed in the powerfu...

Parental investment decisions guide parental actions regarding children's productive work and are shaped by ecological context. Urban ecology enhances long-term payoffs to investment in human capital, increasing opportunity costs for work performed by children, and decreased workload should result. Using an embodied capital framework, self-reported data on urban and rural Indo-Fijian children's...

Many risks are present in rural developing economies: illness, weather, the sudden need to finance an investment opportunity, etc. Yet for many households in rural developing economies, consumption and investment are insured against short-term, idiosyncratic risks to a large extent, despite limited availability of formal banking and insurance products. The importance of kinship networks in faci...

Recent work in the real options approach to investment has argued that firms face significant opportunity costs when entry costs are largely irreversible, and these costs equal the value of an option to defer investment. This study seeks to examine empirically these claims by investigating the interactive effects of uncertainty and irreversibility on the likelihood of entry into new business by...

t Wilkie's stochastic investment model and its variants have been increasingly applied by actuaries around the world to actuarial modeling and simulation. This paper performs time series outlier analysis on retail price inflation, which is the driving force of Wilkie's composite model. The data come from four developed countries: the United Kingdom, the United States, Canada, and Australia. The...

This study aims to determine and describe the effect of inventory, investment opportunity set foreign exchange rates.The population in this includes all automotive component sub-sector companies listed on Indonesian Stock Exchange for 2018-2021 period. Determination sample used as a representative form using purposive sampling technique. The use data analysis techniques is descriptive verificat...