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Decision maker's preferences are often captured by some choice functions which are used to rank prospects. In this paper, we consider ambiguity in choice functions over a multi-attribute prospect space. Our main result is a robust…

Risk Management · Quantitative Finance 2018-05-21 William B. Haskell , Wenjie Huang , Huifu Xu

In this paper we consider the strategic asset allocation of an insurance company. This task can be seen as a special case of portfolio optimization. In the 1950s, Markowitz proposed to formulate portfolio optimization as a bicriteria…

Computational Engineering, Finance, and Science · Computer Science 2021-03-23 Kerstin Dächert , Ria Grindel , Elisabeth Leoff , Jonas Mahnkopp , Florian Schirra , Jörg Wenzel

In this paper, notion of p - norm generalized trapezoidal intuitionistic fuzzy numbers is introduced. A new ranking method is introduced for p - norm generalized trapezoidal intuitionistic fuzzy numbers. Also we consider linear programming…

Optimization and Control · Mathematics 2015-12-08 Shashi Aggarwal , Chavi Gupta

This paper discusses a class of uncertain optimization problems, in which unknown parameters are modeled by fuzzy intervals. The membership functions of the fuzzy intervals are interpreted as possibility distributions for the values of the…

Data Structures and Algorithms · Computer Science 2020-09-15 Adam Kasperski , Pawel Zielinski

This paper presents how the most recent improvements made on covariance matrix estimation and model order selection can be applied to the portfolio optimisation problem. The particular case of the Maximum Variety Portfolio is treated but…

Applications · Statistics 2018-04-03 Emmanuelle Jay , Eugénie Terreaux , Jean-Philippe Ovarlez , Frédéric Pascal

It is well known over the recent years that measuring the success of projects under the umbrella of project management is inextricably linked with the associated cost, time, and quality. Most of the previous researches in the field assigned…

Optimization and Control · Mathematics 2024-01-17 Mohammad Sammany , Ahmad Steef , Nedaa Agami , T. Medhat

Managing insurance and financial risk when data is limited is a key task in the insurance industry. In this paper, we focus on cases where the risk distribution is modeled as a mixture with some components estimable to high precision or…

Optimization and Control · Mathematics 2026-03-03 N. D. Shyamalkumar , Tianrun Wang

Multiview representation learning is very popular for latent factor analysis. It naturally arises in many data analysis, machine learning, and information retrieval applications to model dependent structures among multiple data sources. For…

Machine Learning · Computer Science 2019-09-17 Zhehui Chen , Lin F. Yang , Chris J. Li , Tuo Zhao

Consider convex optimization problems subject to a large number of constraints. We focus on stochastic problems in which the objective takes the form of expected values and the feasible set is the intersection of a large number of convex…

Machine Learning · Statistics 2015-11-13 Mengdi Wang , Yichen Chen , Jialin Liu , Yuantao Gu

A classical portfolio theory deals with finding the optimal proportion in which an agent invests a wealth in a risk-free asset and a probabilistic risky asset. Formulating and solving the problem depend on how the risk is represented and…

Portfolio Management · Quantitative Finance 2019-01-28 Irina Georgescu , Jani Kinnunen

Constrained quasiconvex optimization problems appear in many fields, such as economics, engineering, and management science. In particular, fractional programming, which models ratio indicators such as the profit/cost ratio as fractional…

Optimization and Control · Mathematics 2019-09-02 Kazuhiro Hishinuma , Hideaki Iiduka

A continuous-time financial portfolio selection model with expected utility maximization typically boils down to solving a (static) convex stochastic optimization problem in terms of the terminal wealth, with a budget constraint. In…

Portfolio Management · Quantitative Finance 2022-01-07 Hanqing Jin , Zuo Quan Xu , Xun Yu Zhou

This paper explores a method for solving constrained optimization problems when the derivatives of the objective function are unavailable, while the derivatives of the constraints are known. We allow the objective and constraint function to…

Optimization and Control · Mathematics 2024-02-20 Melody Qiming Xuan , Jorge Nocedal

Mean-reverting portfolios with few assets, but high variance, are of great interest for investors in financial markets. Such portfolios are straightforwardly profitable because they include a small number of assets whose prices not only…

Optimization and Control · Mathematics 2021-04-19 Ahmad Mousavi , Jinglai Shen

We employ model predictive control for a multi-period portfolio optimization problem. In addition to the mean-variance objective, we construct a portfolio whose allocation is given by model predictive control with a risk-parity objective,…

Portfolio Management · Quantitative Finance 2021-03-22 Xiaoyue Li , A. Sinem Uysal , John M. Mulvey

In this paper we present a new algorithmic realization of a projection-based scheme for general convex constrained optimization problem. The general idea is to transform the original optimization problem to a sequence of feasibility…

Optimization and Control · Mathematics 2019-11-12 Aviv Gibali , Karl-Heinz Küfer , Daniel Reem , Philipp Süss

Randomized optimization is an established tool for control design with modulated robustness. While for uncertain convex programs there exist randomized approaches with efficient sampling, this is not the case for non-convex problems.…

Systems and Control · Computer Science 2015-06-08 Sergio Grammatico , Xiaojing Zhang , Kostas Margellos , Paul Goulart , John Lygeros

Fuzzy constraints are a popular approach to handle preferences and over-constrained problems in scenarios where one needs to be cautious, such as in medical or space applications. We consider here fuzzy constraint problems where some of the…

Artificial Intelligence · Computer Science 2009-09-25 Mirco Gelain , Maria Pini , Francesca Rossi , Brent Venable , Toby Walsh

We extend the classical mean-variance (MV) framework and propose a robust and sparse portfolio selection model incorporating an ellipsoidal uncertainty set to reduce the impact of estimation errors and fixed transaction costs to penalize…

Portfolio Management · Quantitative Finance 2024-12-30 J. Chen , S. D. Ahipaşaoğlu , N. Zhang , Y. Yang

This paper proposes a novel technique called "successive stochastic smoothing" that optimizes nonsmooth and discontinuous functions while considering various constraints. Our methodology enables local and global optimization, making it a…

Optimization and Control · Mathematics 2023-08-17 Vladimir Norkin , Alois Pichler , Anton Kozyriev