Work

Elimination of Financial Bubbles Exposure and Tactical Leadership Bias in the risK-Yield Discriminant OptimizatioN—KYDON

Year: 2026

Type: article

Abstract: The novel risK-Yield Discriminant OptimizatioN—KYDON can optimize portfolio selection in a volatile market, eliminating the exposure to extreme events: bubbles and busts. Implementing novel methods such as: (i) chaos dynamics, (ii) behavioral welfare, and (iii) optimal AI classifiers, KYDON supports the optimal investment policy. It diagnoses the possibility of bubbles, prepares for their burst under expectations of long growth and reduces the impact of systemic risk. KYDON performs as a dragonslayer, eliminating the loss of investors.

Source: Risks

DOI: 10.3390/risks14090191

Author: Nikolaos Loukeris

Institution: University of West Attica

Language: English

Topic: Risk and Portfolio Optimization

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,172

Funder: University of West Attica