<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Logistic tasks are aimed at the optimal distribution of material, energy, financial and human resources. This research has a narrow field aimed at optimal management of financial resources and their redistribution. Specifically, a reinvestment policy model is derived by maximizing the profit of a business entity. Reinvestment is done with risk-free assets, but they have different maturity periods. This makes it difficult to assess the optimal investment strategy, as reinvestment can be done at the end of the maturity period. This study develops a model for a dynamic control process, which leads to the formalization of a discrete integer time optimization problem. Its solution gives a sequence of investments and a total optimal return. The solution to the problem is illustrated in an EXCEL environment. The added value of this study stems from the formalization and quantification of the model for the reinvestment strategy in the optimization problem.</p>
</abstract>

Logistic tasks are aimed at the optimal distribution of material, energy, financial and human resources. This research has a narrow field aimed at optimal management of financial resources and their redistribution. Specifically, a reinvestment policy model is derived by maximizing the profit of a business entity. Reinvestment is done with risk-free assets, but they have different maturity periods. This makes it difficult to assess the optimal investment strategy, as reinvestment can be done at the end of the maturity period. This study develops a model for a dynamic control process, which leads to the formalization of a discrete integer time optimization problem. Its solution gives a sequence of investments and a total optimal return. The solution to the problem is illustrated in an EXCEL environment. The added value of this study stems from the formalization and quantification of the model for the reinvestment strategy in the optimization problem.

Model for Reinvestment Policy in Risk-Free Assets with Various Maturities

Cybernetics and Information Technologies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Model for Reinvestment Policy in Risk-Free Assets with Various Maturities"}

Logistic tasks are aimed at the optimal distribution of material, energy, financial and human resources. This research has a narrow field aimed at optimal...

Model for Reinvestment Policy in Risk-Free Assets with Various Maturities

Data publikacji: 12 cze 2023

Zakres stron: 137 - 150

Otrzymano: 19 sty 2023

Przyjęty: 07 kwi 2023

DOI: https://doi.org/10.2478/cait-2023-0018

Słowa kluczowe
Investment management, portfolio reinvestment, optimization, decision making

© 2023 T. Stoilov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Model for Reinvestment Policy in Risk-Free Assets with Various Maturities

Data publikacji: 12 cze 2023

Zakres stron: 137 - 150

Otrzymano: 19 sty 2023

Przyjęty: 07 kwi 2023

DOI: https://doi.org/10.2478/cait-2023-0018

Słowa kluczoweInvestment management, portfolio reinvestment, optimization, decision making

© 2023 T. Stoilov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
Investment management, portfolio reinvestment, optimization, decision making