### Abstract

The c-minus-age strategy is a popular strategy for life-cycle investing. When applying the c-minus-age strategy, an investor first chooses an indirect preference parameter c and at age t will hold a percentage of c minus t in equity assets. In this article, we use a linear and a multiplicative mean-variance utility function to quantitatively analyse the term structure of the mean-variance tradeoffs implied by the c-minus-age strategy. We also provide an optimal procedure to determine c, based on the two direct preference parameters, elicited from an investor, of a multiplicative mean-variance utility function.

Original language | English |
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Pages (from-to) | 711-718 |

Number of pages | 8 |

Journal | Applied Economics Letters |

Volume | 16 |

Issue number | 7 |

DOIs | |

Publication status | Published - 2009 Jul 16 |

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### ASJC Scopus subject areas

- Economics and Econometrics

### Cite this

*Applied Economics Letters*,

*16*(7), 711-718. https://doi.org/10.1080/13504850701221758

**Analysing the c-minus-age strategy for life-cycle investing.** / Lai, Christine W.; Lai, Tsung Chyan.

Research output: Contribution to journal › Article

*Applied Economics Letters*, vol. 16, no. 7, pp. 711-718. https://doi.org/10.1080/13504850701221758

}

TY - JOUR

T1 - Analysing the c-minus-age strategy for life-cycle investing

AU - Lai, Christine W.

AU - Lai, Tsung Chyan

PY - 2009/7/16

Y1 - 2009/7/16

N2 - The c-minus-age strategy is a popular strategy for life-cycle investing. When applying the c-minus-age strategy, an investor first chooses an indirect preference parameter c and at age t will hold a percentage of c minus t in equity assets. In this article, we use a linear and a multiplicative mean-variance utility function to quantitatively analyse the term structure of the mean-variance tradeoffs implied by the c-minus-age strategy. We also provide an optimal procedure to determine c, based on the two direct preference parameters, elicited from an investor, of a multiplicative mean-variance utility function.

AB - The c-minus-age strategy is a popular strategy for life-cycle investing. When applying the c-minus-age strategy, an investor first chooses an indirect preference parameter c and at age t will hold a percentage of c minus t in equity assets. In this article, we use a linear and a multiplicative mean-variance utility function to quantitatively analyse the term structure of the mean-variance tradeoffs implied by the c-minus-age strategy. We also provide an optimal procedure to determine c, based on the two direct preference parameters, elicited from an investor, of a multiplicative mean-variance utility function.

UR - http://www.scopus.com/inward/record.url?scp=67650233890&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=67650233890&partnerID=8YFLogxK

U2 - 10.1080/13504850701221758

DO - 10.1080/13504850701221758

M3 - Article

AN - SCOPUS:67650233890

VL - 16

SP - 711

EP - 718

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1350-4851

IS - 7

ER -