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We present an iterative scheme, reminiscent of the Multigrid method, to solve large boundary value problems with Probabilistic Domain Decomposition (PDD). In it, increasingly accurate approximations to the solution are used as control…

Numerical Analysis · Mathematics 2017-01-06 Francisco Bernal , Juan A. Acebrón

In high-dimensional and/or non-parametric regression problems, regularization (or penalization) is used to control model complexity and induce desired structure. Each penalty has a weight parameter that indicates how strongly the structure…

Machine Learning · Statistics 2017-03-30 Jean Feng , Noah Simon

A number of variable selection methods have been proposed involving nonconvex penalty functions. These methods, which include the smoothly clipped absolute deviation (SCAD) penalty and the minimax concave penalty (MCP), have been…

Applications · Statistics 2011-04-15 Patrick Breheny , Jian Huang

This paper makes the Millennium Prize problem P vs NP operational in quantitative finance by studying cardinality-constrained portfolio selection. Starting from the convex Markowitz mean-variance program with CAPM-based expected returns (Rf…

Econometrics · Economics 2026-03-18 Davit Gondauri

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 portfolio selection within the classical Markowitz mean-variance framework, reformulated as a constrained least-squares regression problem. We propose to add to the objective function a penalty proportional to the…

Portfolio Management · Quantitative Finance 2013-01-01 Joshua Brodie , Ingrid Daubechies , Christine De Mol , Domenico Giannone , Ignace Loris

We consider minimization problems with structured objective function and smooth constraints, and present a flexible framework that combines the beneficial regularization effects of (exact) penalty and interior-point methods. In the fully…

Optimization and Control · Mathematics 2025-08-27 Alberto De Marchi , Andreas Themelis

We propose a deep learning algorithm for high dimensional optimal stopping problems. Our method is inspired by the penalty method for solving free boundary PDEs. Within our approach, the penalized PDE is approximated using the Deep BSDE…

Mathematical Finance · Quantitative Finance 2026-04-07 Yunfei Peng , Pengyu Wei , Wei Wei

Minimizing a sum of simple submodular functions of limited support is a special case of general submodular function minimization that has seen numerous applications in machine learning. We develop fast techniques for instances where…

Machine Learning · Computer Science 2021-10-29 Nate Veldt , Austin R. Benson , Jon Kleinberg

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 the multiple changepoint setting, various search methods have been proposed which involve optimising either a constrained or penalised cost function over possible numbers and locations of changepoints using dynamic programming. Such…

Computation · Statistics 2014-12-12 Kaylea Haynes , Idris A. Eckley , Paul Fearnhead

A financial portfolio contains assets that offer a return with a certain level of risk. To maximise returns or minimise risk, the portfolio must be optimised - the ideal combination of optimal quantities of assets must be found. The number…

Computational Engineering, Finance, and Science · Computer Science 2023-07-11 Alexander Nikiporenko

Cardinality estimation is a fundamental task in database management systems, aiming to predict query results accurately without executing the queries. However, existing techniques either achieve low estimation accuracy or incur high…

Databases · Computer Science 2025-08-14 Yaoyu Zhu , Jintao Zhang , Guoliang Li , Jianhua Feng

We propose a stochastic variance reduced optimization algorithm for solving sparse learning problems with cardinality constraints. Sufficient conditions are provided, under which the proposed algorithm enjoys strong linear convergence…

Machine Learning · Computer Science 2017-12-27 Xingguo Li , Raman Arora , Han Liu , Jarvis Haupt , Tuo Zhao

Many real-world problems are categorized as large-scale problems, and metaheuristic algorithms as an alternative method to solve large-scale problem; they need the evaluation of many candidate solutions to tackle them prior to their…

Neural and Evolutionary Computing · Computer Science 2020-09-14 Shahryar Rahnamayan , Seyed Jalaleddin Mousavirad

Total variation integer optimal control problems admit solutions and necessary optimality conditions via geometric variational analysis. In spite of the existence of said solutions, algorithms which solve the discretized objective suffer…

Optimization and Control · Mathematics 2025-08-07 Robert Baraldi , Paul Manns

Stochastic composition optimization draws much attention recently and has been successful in many emerging applications of machine learning, statistical analysis, and reinforcement learning. In this paper, we focus on the composition…

Machine Learning · Computer Science 2018-01-01 Zhouyuan Huo , Bin Gu , Ji Liu , Heng Huang

We consider continuous-time mean-variance portfolio selection with bankruptcy prohibition under convex cone portfolio constraints. This is a long-standing and difficult problem not only because of its theoretical significance, but also for…

Portfolio Management · Quantitative Finance 2015-07-27 Xun Li , Zuo Quan Xu

Optimal portfolio allocation is often formulated as a constrained risk problem, where one aims to minimize a risk measure subject to some performance constraints. This paper presents new Bayesian Optimization algorithms for such constrained…

Portfolio Management · Quantitative Finance 2025-03-25 Robert Millar , Jinglai Li

Bilevel programming has recently received attention in the literature due to its wide range of applications, including reinforcement learning and hyper-parameter optimization. However, it is widely assumed that the underlying bilevel…

Machine Learning · Computer Science 2024-10-11 Parvin Nazari , Ahmad Mousavi , Davoud Ataee Tarzanagh , George Michailidis
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