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This study aims to demonstrate the optimal multiperiod dynamic asset allocation for a generalized situation and enable the investor to maximize his expected terminal wealth utility. Previous researches solved this problem constrained by the investor's utility function, the asset return distributions, the completeness of the market, the lack of transaction costs and other factors. Accordingly, this study considers a generalized situation where all the constraints are relaxed and provides a calculation process for solving this problem.

This paper examines the informativeness of embedded value reporting to stock price by investigating the cross-sectional variations in life insurers' price to embedded value ratios. By conducting variance decomposition analysis on a dataset provided by Morgan Stanley, we find that 15 percent (40 percent) of the difference between embedded value and stock price can be explained by growth opportunities and future stock returns in the short (long) run. One-third and two-thirds of the unexplained variation are attributed to firm-and countryspecific factors, respectively. The above findings provide investors with a better understanding of the value relevance of embedded value reporting.

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