A risk-reward model for the on-line leasing of depreciable equipment

The optimal deterministic strategy for the on-line leasing of depreciable equipment is presented here for cases with and without an interest rate. A risk-reward model in which the on-line investor can develop optimal strategies based on his/her risk tolerance and forecast is discussed. Numerical analysis shows that the competitive performance is significantly improved in the proposed model.

Research highlights
► On-line leasing of depreciable equipment.
► Develop optimal strategies based on his/her risk tolerance and forecast.
► Competitive performance is significantly improved in the proposed model.