Precommitted Investment Strategy versus Time-Consistent Investment Strategy for a General Risk Model with Diffusion

<table class="table-group" width="800px"><tr class="fig-image" id="a"><td><img alt="358623.fig.006a" src="https://static.hindawi.com/articles/aaa/volume-2014/358623/figures/358623.fig.006a.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(a) </b>The comparison of optimal strategies</td></tr></table></td></tr><tr class="fig-image" id="b"><td><img alt="358623.fig.006b" src="https://static.hindawi.com/articles/aaa/volume-2014/358623/figures/358623.fig.006b.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(b) </b>The comparison of the value functions</td></tr></table></td></tr><tr class="fig-image" id="c"><td><img alt="358623.fig.006c" src="https://static.hindawi.com/articles/aaa/volume-2014/358623/figures/358623.fig.006c.jpg"/></td></tr><tr class="fig-caption"><td align="center"><table><tr><td><b>(c) </b>The comparison of different efficient frontiers</td></tr></table></td></tr></table>

<table>The comparisons between the precommitted strategy and the time-consistent strategy.</table>

Abstract and Applied Analysis

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Figure 6

Figure 6: Precommitted Investment Strategy versus Time-Consistent Investment Strategy for a General Risk Model with Diffusion 