It has been shown that investors can benefit from including derivatives into their portfolios. For retail investors, however, a direct investment in derivatives is often too complicated. Investment certificates offer a potential solution to this problem. We analyze if retail investors who buy...

It has been shown that investors can benefit from including derivatives into theirportfolios. For retail investors, however, a direct investment in derivatives is oftentoo complicated. Investment certificates offer a potential solution to this problem.We analyze if retail investors who buy and...

Since trading cannot take place continuously, the optimal portfolio calculated ina continuous-time model cannot be held, but the investor has to implement thecontinuous-time strategy in discrete time. This leads to the question how severe theresulting discretization error is. We analyze this...

Optimal portfolio strategies are easy to compute in continuous-time models. In reality trading is discrete, so that these optimal strategies cannot be implemented properly. When the investor follows a naive discretization strategy, i.e. when he implements the optimal continuous-time strategy in...

Since trading cannot take place continuously, the optimal portfolio calculated in a continuous-time model cannot be held, but the investor has to implement the continuous-time strategy in discrete time. This leads to the question how severe the resulting discretization error is. We analyze this...