%0 Journal Article
%T Variational Form of Classical Portfolio Strategy and Expected Wealth for a Defined Contributory
%A Charles I. Nkeki
%A Chukwuma R. Nwozo
%J Journal of Mathematical Finance
%P 132-139
%@ 2162-2442
%D 2012
%I Scientific Research Publishing
%R 10.4236/jmf.2012.21015
%X This paper examines the variational form of classical portfolio strategy and expected terminal wealth for a Pension Plan Member (PPM) in a Defined Contribution (DC) Pension scheme. The flows of contributions made by PPM are invested into a market that is characterized by a cash account and a stock. It was assumed that the growth rate of salary of PPM is a linear function of time. The present value of PPM¡¯s future contribution process was obtained. The optimal portfolio processes with inter-temporal hedging terms that offset any shocks to the stochastic cash inflows were established. The expected value of PPM¡¯s terminal wealth was obtained.
%K Variational Form
%K Classical Portfolio Strategy
%K Expected Wealth
%K Defined Contribution
%K Pension Scheme
%K Pension Plan Member
%K Inter-Temporal Hedging Terms
%K Stochastic Salary
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=17617