Advanced search
Publication Cover
Applied Economics Letters Volume 29, 2022 - Issue 16
Submit an article Journal homepage
758
Views
2
CrossRef citations to date
0
Altmetric
Research Article

Robo-advisor using closed-form solutions for investors’ risk preferences

Zhi-Long Donga School of Economics and Finance, Xi’an Jiaotong University, Xi’an, ChinaCorrespondence[email protected]
ORCID Iconhttps://orcid.org/0000-0002-1385-0704View further author information
ORCID Icon,
Min-Xing Zhub Faculty of Business and Administration, University of Macau, Macau, ChinaCorrespondence[email protected]
ORCID Iconhttps://orcid.org/0000-0002-3037-2038View further author information
ORCID Icon &
Feng-Min Xua School of Economics and Finance, Xi’an Jiaotong University, Xi’an, ChinaView further author information
Pages 1470-1477 | Published online: 15 Jun 2021

References

  • Alsabah, H., A. Capponi, O. Ruiz Lacedelli, and M. Stern. 2020. “Robo-advising: Learning Investors’ Risk Preferences via Portfolio Choices.” Journal of Financial Econometrics nbz040. doi:10.1093/jjfinec/nbz040.
  • Beketov, M., K. Lehmann, and M. Wittke. 2018. “Robo Advisors: Quantitative Methods inside the Robots.” Journal of Asset Management 19 (6): 363–370. doi:10.1057/s41260-018-0092-9.
  • Belanche, D., L. V. Casaló, and C. Flavián. 2019. “Artificial Intelligence in FinTech: Understanding Robo-advisors Adoption among Customers.” Industrial Management & Data Systems 119 (7): 1411–1430. doi:10.1108/IMDS-08-2018-0368.
  • Bodnar, T., Y. Okhrin, V. Vitlinskyy, and T. Zabolotskyy. 2018. “Determination and Estimation of Risk Aversion Coefficients.” Computational Management Science 15 (2): 297–317. doi:10.1007/s10287-018-0317-x.
  • Brenner, L., and T. Meyll. 2020. “Robo-advisors: A Substitute for Human Financial Advice?” Journal of Behavioral and Experimental Finance 25: 100275. doi:10.1016/j.jbef.2020.100275.
  • Bucciol, A., and R. Miniaci. 2011. “Household Portfolios and Implicit Risk Preference.” Review of Economics and Statistics 93: 1235–1250. doi:10.1162/REST_a_00138.
  • D’Acunto, F., N. Prabhala, and A. G. Rossi. 2019. “The Promises and Pitfalls of Robo-Advising.” The Review of Financial Studies 32 (5): 1983–2020. doi:10.1093/rfs/hhz014.
  • Dong, Z.-L., F. Xu, and Y.-H. Dai. 2020. “Fast Algorithms for Sparse Portfolio Selection considering Industries and Investment Styles.” Journal of Global Optimization 78: 763–789. doi:10.1007/s10898-020-00911-1.
  • Dospinescu, N., and O. Dospinescu. 2019. “A Profitability Regression Model in Financial Communication of Romanian Stock Exchange’s Companies.” Ecoforum Journal 8: 1.
  • Faloon, M., and B. Scherer. 2017. “Individualization of Robo-advice.” The Journal of Wealth Management 20 (1): 30–36. doi:10.3905/jwm.2017.20.1.030.
  • Jung, D., V. Dorner, F. Glaser, and S. Morana. 2018a. “Robo-advisory.” Business & Information Systems Engineering 60 (1): 81–86. doi:10.1007/s12599-018-0521-9.
  • Jung, D., V. Dorner, C. Weinhardt, and H. Pusmaz. 2018b. “Designing a Robo-advisor for Risk-averse, Low-budget Consumers.” Electronic Markets 28 (3): 367–380. doi:10.1007/s12525-017-0279-9.
  • Riegera, M. O., T. M. Nguyenb, B. Schnurb, and M. Wang. 2021. “Taking More Risk Tomorrow: Time Horizons and Investment Decisions.” Applied Economics Letters 28 (6): 459–463. doi:10.1080/13504851.2020.1761522.
  • Tertilt, M., and P. Scholz. 2018. “To Advise, or Not to Advise–how Robo-advisors Evaluate the Risk Preferences of Private Investors.” The Journal of Wealth Management 21 (2): 70–84. doi:10.3905/jwm.2018.21.2.070.
  • Wachter, J. A. 2002. “Portfolio and Consumption Decisions under Mean-reverting Returns: An Exact Solution for Complete Markets.” Journal of Financial and Quantitative Analysis 37 (1): 63–91. doi:10.2307/3594995.
  • Wenzelburger, J. 2010. “The Two-fund Separation Theorem Revisited.” Annals of Finance 6 (2): 221–239. doi:10.1007/s10436-009-0144-8.
  • Zhu, S. S., W. Zhu, X. Pei, and X. T. Cui. 2020. “Hedging Crash Risk in Optimal Portfolio Selection.” Journal of Banking & Finance 119: 105905. doi:10.1016/j.jbankfin.2020.105905.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Order Reprints Request Corporate Permissions

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

Request Academic Permissions

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.