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Impact of Dual Stock Holding and Stochastic Income on the Investor’s Remuneration Package

DOI: 10.4236/jmf.2021.112011, PP. 206-217

Keywords: Stochastic Income, Investment Value Function, Remuneration

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Abstract:

In this paper, we have investigated how an investor’s income, who is rewarded by managing dual company stocks and additionally receives stochastic income, grows. We have calculated the optimal stock price\"\" and the optimal stock output \"\" that maximize his returns. We have shown that the best strategy is to choose\"\" from the set of prices \"\".

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