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We consider joint optimization and learning problems arising in real-time decision systems. While most existing work focuses primarily on convex, revenue-based objectives, we extend this line of research to multi-objective formulations. In…

Optimization and Control · Mathematics 2026-04-14 Zijun Li , Aswin Kannan

In this paper, we propose a predictor-corrector type Consensus Based Optimization (CBO) algorithm on a convex feasible set. Our proposed algorithm generalizes the CBO algorithm in [11] to tackle a constrained optimization problem for the…

Optimization and Control · Mathematics 2021-10-14 Hyeong-Ohk Bae , Seung-Yeal Ha , Myeongju Kang , Hyuncheul Lim , Chanho Min , Jane Yoo

We consider the problem of choosing a portfolio that maximizes the cumulative prospect theory (CPT) utility on an empirical distribution of asset returns. We show that while CPT utility is not a concave function of the portfolio weights, it…

Optimization and Control · Mathematics 2024-01-11 Eric Luxenberg , Philipp Schiele , Stephen Boyd

In this paper we study an optimal portfolio selection problem under instantaneous price impact. Based on some empirical analysis in the literature, we model such impact as a concave function of the trading size when the trading size is…

Probability · Mathematics 2012-12-20 Jin Ma , Qingshuo Song , Jing Xu , Jianfeng Zhang

The sparse portfolio selection problem is one of the most famous and frequently-studied problems in the optimization and financial economics literatures. In a universe of risky assets, the goal is to construct a portfolio with maximal…

Optimization and Control · Mathematics 2022-02-22 Dimitris Bertsimas , Ryan Cory-Wright

In this paper, we aim at solving the cardinality constrained high-order portfolio optimization, i.e., mean-variance-skewness-kurtosis model with cardinality constraint (MVSKC). Optimization for the MVSKC model is of great difficulty in two…

Portfolio Management · Quantitative Finance 2021-06-11 Jinxin Wang , Zengde Deng , Taoli Zheng , Anthony Man-Cho So

This paper introduces a new functional optimization approach to portfolio optimization problems by treating the unknown weight vector as a function of past values instead of treating them as fixed unknown coefficients in the majority of…

Portfolio Management · Quantitative Finance 2020-12-10 Ka Wai Tsang , Zhaoyi He

We study projection-free methods for functional constrained optimization with convex or smooth nonconvex objectives. Such problems arise in applications such as portfolio optimization and radiation therapy planning, where risk-aware…

Optimization and Control · Mathematics 2026-05-12 Yi Cheng , Guanghui Lan , Saeed Masiha , H. Edwin Romeijn

We propose an iterative gradient-based algorithm to efficiently solve the portfolio selection problem with multiple spectral risk constraints. Since the conditional value at risk (CVaR) is a special case of the spectral risk measure, our…

Portfolio Management · Quantitative Finance 2015-03-26 Carlos Abad , Garud Iyengar

In this paper we consider convex optimization problems with stochastic composite objective function subject to (possibly) infinite intersection of constraints. The objective function is expressed in terms of expectation operator over a sum…

Optimization and Control · Mathematics 2024-12-03 Ion Necoara , Nitesh Kumar Singh

The superiority and inferiority ranking (SIR) method is a generation of the well-known PROMETHEE method, which can be more efficient to deal with multi-criterion decision making (MCDM) problem. Intuitionistic fuzzy sets (IFSs), as an…

Artificial Intelligence · Computer Science 2011-07-07 Junyi Chai , James N. K. Liu

In this paper, we discuss the ambiguous chance constrained based portfolio optimization problems, in which the perturbations associated with the input parameters are stochastic in nature, but their distributions are not known precisely. We…

Optimization and Control · Mathematics 2023-11-09 Pulak Swain , Akshay Kumar Ojha

Aiming at the group decision - making problem with multi - objective attributes, this study proposes a group decision - making system that integrates fuzzy inference and Bayesian network. A fuzzy rule base is constructed by combining…

Artificial Intelligence · Computer Science 2025-05-01 Shui-jin Rong , Wei Guo , Da-qing Zhang

Traditional approaches to portfolio optimization, often rooted in Modern Portfolio Theory and solved via quadratic programming or evolutionary algorithms, struggle with scalability or flexibility, especially in scenarios involving complex…

Computational Engineering, Finance, and Science · Computer Science 2025-07-23 Christian Oliva , Pedro R. Ventura , Luis F. Lago-Fernández

We study a static portfolio optimization problem with two risk measures: a principle risk measure in the objective function and a secondary risk measure whose value is controlled in the constraints. This problem is of interest when it is…

Portfolio Management · Quantitative Finance 2020-12-14 Çağın Ararat

This paper presents a piecewise convexification method for solving non-convex multi-objective optimization problems with box constraints. Based on the ideas of the $\alpha$-based Branch and Bound (${\rm \alpha BB}$) method of global…

Optimization and Control · Mathematics 2022-06-28 Q. Zhu , L. P. Tang , X. M. Yang

We consider the problem of choosing an optimal portfolio, assuming the asset returns have a Gaussian mixture (GM) distribution, with the objective of maximizing expected exponential utility. In this paper we show that this problem is…

Optimization and Control · Mathematics 2022-08-12 Eric Luxenberg , Stephen Boyd

Mean-reverting portfolios with volatility and sparsity constraints are of prime interest to practitioners in finance since they are both profitable and well-diversified, while also managing risk and minimizing transaction costs. Three main…

Optimization and Control · Mathematics 2024-01-22 Ahmad Mousavi , George Michailidis

We consider the optimization of active extension portfolios. For this purpose, the optimization problem is rewritten as a stochastic programming model and solved using a clever multi-start local search heuristic, which turns out to provide…

Portfolio Management · Quantitative Finance 2014-07-01 Ronald Hochreiter , Christoph Waldhauser

We present an adaptive step-size method, which does not include line-search techniques, for solving a wide class of nonconvex multiobjective programming problems on an unbounded constraint set. We also prove convergence of a general…

Optimization and Control · Mathematics 2024-02-12 Nguyen Anh Minh , Le Dung Muu , Tran Ngoc Thang