Optimization Theory And Methods In The Investment Decision

Optimization Theory and Methods is the most important subject in application areas, it studies the best method of the decision-making problem. As an application, the Principal-Agent Theory tries to model the following problem: How does the principal choose the optimal strategy according to the information observed from the agent in asymmetric information. It is a typical principal-agent relationship between the investor and the manager who take part in Privately Offered Fund. The main decision-making of investor is how to allocate his capital and maximize the investment utility. This thesis makes the research on the capital budgeting process of the Privately Offered Fund investor. The main content and the achievement of this thesis are given as follows:In Chapter 1, the conception, characters and advantages of Privately Offered Fund, the process the investor make decision are introduced. Then it summarized the present researches on Privately Offered Fund and pointed out the ignore how the investor make decision which this thesis mainly cares.In Chapter 2, the conception and the categories of Principal桝gent problem, the framework of the Principal桝gent Theory, the reasons and the behavior of the Principal?Agent problem in Privately Offered Fund are introduced. It is mentioned that the decision for the investor is how to allocate his capital in asymmetric information.In Chapter 3, to solve the asymmetric information decision-making problem of the Privately Offered Fund investor, the thesis sets up a model and makes the analysis. The results show that the audit cost affects the decision greatly and the investment situations change better with lower audit cost or change worse with high audit cost.In Chapter 4, the thesis makes some researches on the investment decision from the aspect of the strategies of Privately Offered Fund manager. And then, it proposes that the manager can distinguish the investor's acceptability of risk with the higher required investment capital level.