Optimal weight based on energy imbalance and utility maximization

AbstractThis paper investigates a financial market where stock returns depend on an unobservable Gaussian mean reverting drift process. Information on the drift is obtained from returns and randomly arriving discrete-time expert opinions. Drift estimates are based on Kalman filter techniques. We study the asymptotic behavior of the filter for high-frequency experts with variances that grow linearly with the arrival intensity. The derived limit theorems state that the information provided by discrete-time expert opinions is asymptotically the same as that from observing a certain diffusion process. These diffusion approximations are extremely helpful for deriving simplified approximate solutions of utility maximization problems.

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Anthropogenic forcing and response yield observed positive trend in Earth’s energy imbalance

Nature Communications ◽

10.1038/s41467-021-24544-4 ◽

2021 ◽

Vol 12 (1) ◽

Author(s):

Shiv Priyam Raghuraman ◽

David Paynter ◽

V. Ramaswamy

Keyword(s):

Radiative Forcing ◽

Climate Model ◽

Solar Spectrum ◽

Internal Variability ◽

Satellite Observations ◽

Positive Trend ◽

Energy Imbalance ◽

Model Simulations ◽

Heat Uptake ◽

Climate Model Simulations

AbstractThe observed trend in Earth’s energy imbalance (TEEI), a measure of the acceleration of heat uptake by the planet, is a fundamental indicator of perturbations to climate. Satellite observations (2001–2020) reveal a significant positive globally-averaged TEEI of 0.38 ± 0.24 Wm−2decade−1, but the contributing drivers have yet to be understood. Using climate model simulations, we show that it is exceptionally unlikely (<1% probability) that this trend can be explained by internal variability. Instead, TEEI is achieved only upon accounting for the increase in anthropogenic radiative forcing and the associated climate response. TEEI is driven by a large decrease in reflected solar radiation and a small increase in emitted infrared radiation. This is because recent changes in forcing and feedbacks are additive in the solar spectrum, while being nearly offset by each other in the infrared. We conclude that the satellite record provides clear evidence of a human-influenced climate system.

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Utility maximization problem using curve trapezoidal fuzzy number

Ifost ◽

10.1109/ifost.2013.6616992 ◽

2013 ◽

Author(s):

Ser-Od Bayaraa ◽

U. Delgersaikhan ◽

N. Dalaisaikhan

Keyword(s):

Fuzzy Number ◽

Utility Maximization ◽

Maximization Problem ◽

Trapezoidal Fuzzy Number ◽

Utility Maximization Problem

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