Climate modelers have recognized the possibility of abrupt climate changes caused by a reorganization of the North Atlantic's current pattern (technically known as a thermohaline circulation collapse). This circulation system now warms north-western Europe and transports carbon dioxide to the...

Average Value-at-Risk (AVaR) is a potential alternative to Value-at-Risk in the financial regulation of banking and insurance institutions. To understand how AVaR influences a company's investment behavior, we study portfolio optimization under the AVaR constraint. Our main contribution is to...