Maillet, Bertrand Bruno; Tokpavi, Sessi; Vaucher, Benoit - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2013
parameter uncertainty. Using a robust control approach, we introduce a portfolio rule for investors who wish to invest in the … global minimum variance portfolio due to its strong historical track record but seek a rule that is robust to parameter … uncertainty. Our robust portfolio theoretically corresponds to the global minimum variance portfolio in the worst-case scenario …