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Temporal and Spatial Turnpike-Type Results Under Forward Time-Monotone Performance Criteria. (arXiv:1702.05649v1 [q-fin.MF])

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We present turnpike-type results for the risk tolerance function in an incomplete market setting under time-monotone forward performance criteria. We show that, contrary to the classical case, the temporal and spatial limits do not coincide. We also show that they depend directly on the left- and right-end of the support of an underlying measure, which is used to construct the forward performance criterion. We provide examples with discrete and continuous measures, and discuss the asymptotic behavior of the risk tolerance for each case.


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