### Abstract

Original language | English |
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Title of host publication | IEEE Vehicular Technology Conference |

Subtitle of host publication | VTC Spring 2008 |

Publisher | Institute of Electrical and Electronic Engineers IEEE |

Pages | 1756-1760 |

ISBN (Electronic) | 978-1-4244-1645-5 |

ISBN (Print) | 978-1-4244-1644-8 |

DOIs | |

Publication status | Published - 2008 |

MoE publication type | A4 Article in a conference publication |

Event | IEEE Vehicular Technology Conference, VTC Spring 2008 - Singapore, Singapore Duration: 11 May 2008 → 14 May 2008 |

### Publication series

Name | |
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ISSN (Print) | 1550-2252 |

### Conference

Conference | IEEE Vehicular Technology Conference, VTC Spring 2008 |
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Abbreviated title | VTC Spring 2008 |

Country | Singapore |

City | Singapore |

Period | 11/05/08 → 14/05/08 |

### Fingerprint

### Keywords

- adaptive transmission
- finance theory
- multiantenna systems
- finance
- particle measurements
- narrowband
- Gaussian channels
- adaptive systems
- performance analysis
- vectors
- fading

### Cite this

*IEEE Vehicular Technology Conference: VTC Spring 2008*(pp. 1756-1760). Institute of Electrical and Electronic Engineers IEEE. https://doi.org/10.1109/VETECS.2008.402

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*IEEE Vehicular Technology Conference: VTC Spring 2008.*Institute of Electrical and Electronic Engineers IEEE, pp. 1756-1760, IEEE Vehicular Technology Conference, VTC Spring 2008, Singapore, Singapore, 11/05/08. https://doi.org/10.1109/VETECS.2008.402

**Application of financial risk-reward theory to adaptive transmission.** / Kotelba, Adrian; Mämmelä, Aarne.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

TY - GEN

T1 - Application of financial risk-reward theory to adaptive transmission

AU - Kotelba, Adrian

AU - Mämmelä, Aarne

PY - 2008

Y1 - 2008

N2 - This paper introduces a novel quantitative framework for measuring the risk and the reward provided by adaptive transmission schemes. In particular, the reward is measured as the expected value of the link spectral efficiency in excess of some predefined threshold. The risk, on the other hand, is the nth root of the nth order lower partial moment of the link spectral efficiency distribution. We apply mathematical tools of finance theory to analyze the risk-reward performance of various state-of-the-art adaptive transmission schemes in generic multi- antenna channels. We identify the maximum-return, minimum- risk, efficient, and optimal risk-reward schemes. The numerical results suggest that in a general case the optimal risk-reward scheme is neither the scheme that maximizes the expected link spectral efficiency nor the scheme that minimizes the risk by minimizing, e.g., the outage probability. The financial risk-reward theory brings a new intuition to the understanding of adaptive transmission in nonergodic channels. (15 refs.)

AB - This paper introduces a novel quantitative framework for measuring the risk and the reward provided by adaptive transmission schemes. In particular, the reward is measured as the expected value of the link spectral efficiency in excess of some predefined threshold. The risk, on the other hand, is the nth root of the nth order lower partial moment of the link spectral efficiency distribution. We apply mathematical tools of finance theory to analyze the risk-reward performance of various state-of-the-art adaptive transmission schemes in generic multi- antenna channels. We identify the maximum-return, minimum- risk, efficient, and optimal risk-reward schemes. The numerical results suggest that in a general case the optimal risk-reward scheme is neither the scheme that maximizes the expected link spectral efficiency nor the scheme that minimizes the risk by minimizing, e.g., the outage probability. The financial risk-reward theory brings a new intuition to the understanding of adaptive transmission in nonergodic channels. (15 refs.)

KW - adaptive transmission

KW - finance theory

KW - multiantenna systems

KW - finance

KW - particle measurements

KW - narrowband

KW - Gaussian channels

KW - adaptive systems

KW - performance analysis

KW - vectors

KW - fading

U2 - 10.1109/VETECS.2008.402

DO - 10.1109/VETECS.2008.402

M3 - Conference article in proceedings

SN - 978-1-4244-1644-8

SP - 1756

EP - 1760

BT - IEEE Vehicular Technology Conference

PB - Institute of Electrical and Electronic Engineers IEEE

ER -