Stochastic correlation models have become increasingly important in financial markets. In order to be able to price vanilla options in stochastic volatility and correlation models, in this work, we study the extension of the Heston model by imposing stochastic correlations driven by a stochastic...

To address the challenge of minimizing the risk of irrational investment decisions made by investors in the face of wealth fluctuations, this article incorporates prospect theory and disappointment theory into the framework of multi-objective portfolio selection. The proposed portfolio selection...

Stochastic correlation models have become increasingly important in financial markets. In order to be able to price vanilla options in stochastic volatility and correlation models, in this work, we study the extension of the Heston model by imposing stochastic correlations driven by a stochastic...

This paper examines the spatial spillover paths of household debt risk to sectors such as commercial banks, real enterprises and local governments, using the CHFS database and the CFPS database for a sample of micro data from 2011-2019. It is found that: household debt risk pushes up the...