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Quantum computing is a computational paradigm with the potential to outperform classical methods for a variety of problems. Proposed recently, the Quantum Approximate Optimization Algorithm (QAOA) is considered as one of the leading…

Machine Learning · Computer Science 2022-06-16 Sami Khairy , Ruslan Shaydulin , Lukasz Cincio , Yuri Alexeev , Prasanna Balaprakash

The Quantum Approximate Optimization Algorithm (QAOA) is a promising quantum approach for tackling combinatorial optimization problems. However, hardware constraints such as limited scaling and susceptibility to noise pose significant…

Quantum Physics · Physics 2025-05-19 Bao G Bach , Filip B. Maciejewski , Ilya Safro

Quantum computers are increasing in size and quality, but are still very noisy. Error mitigation extends the size of the quantum circuits that noisy devices can meaningfully execute. However, state-of-the-art error mitigation methods are…

Quantum Physics · Physics 2024-03-25 Stefan H. Sack , Daniel J. Egger

Quantum approximate optimization algorithm (QAOA) aims to solve discrete optimization problems by sampling bitstrings using a parameterized quantum circuit. The circuit parameters (angles) are optimized in the way that minimizes the cost…

Quantum Physics · Physics 2023-11-29 A. Yu. Chernyavskiy , B. I. Bantysh , Yu. I. Bogdanov

Combinatorial optimization on near-term quantum devices is a promising path to demonstrating quantum advantage. However, the capabilities of these devices are constrained by high noise or error rates. In this paper, we propose an iterative…

Quantum Physics · Physics 2022-05-12 Xiaoyuan Liu , Anthony Angone , Ruslan Shaydulin , Ilya Safro , Yuri Alexeev , Lukasz Cincio

Optimizing carbon credit portfolios is a critical challenge for climate mitigation, particularly in high-biodiversity biomes such as the Brazilian Cerrado. This study explores the practical application of the Quantum Approximate…

Quantum Physics · Physics 2026-02-11 Hugo José Ribeiro

The quantum approximate optimization algorithm (QAOA) is a near-term quantum algorithm aimed at solving combinatorial optimization problems. Since its introduction, various generalizations have emerged, spanning modifications to the initial…

Quantum Physics · Physics 2024-11-18 Truman Yu Ng , Jin Ming Koh , Dax Enshan Koh

Quantum computers have now surpassed classical simulation limits, yet noise continues to limit their practical utility. As the field shifts from proof-of-principle demonstrations to early deployments, there is no standard method for…

Quantum Physics · Physics 2025-05-29 J. A. Montanez-Barrera , Kristel Michielsen , David E. Bernal Neira

In this paper we show how to implement in a simple way some complex real-life constraints on the portfolio optimization problem, so that it becomes amenable to quantum optimization algorithms. Specifically, first we explain how to obtain…

Portfolio Management · Quantitative Finance 2021-08-23 Samuel Palmer , Serkan Sahin , Rodrigo Hernandez , Samuel Mugel , Roman Orus

The Quantum Approximate Optimization Algorithm (QAOA) was originally developed to solve combinatorial optimization problems, but has become a standard for assessing the performance of quantum computers. Fully descriptive benchmarking…

Quantum Physics · Physics 2024-02-29 Anthony M. Polloreno , Graeme Smith

Quantum approximate optimization algorithm (QAOA) has shown promise in solving combinatorial optimization problems by providing quantum speedup on near-term gate-based quantum computing systems. However, QAOA faces challenges for…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-24 Seongmin Kim , Vincent R. Pascuzzi , Zhihao Xu , Tengfei Luo , Eungkyu Lee , In-Saeng Suh

The Quantum Approximate Optimization Algorithm (QAOA) has emerged as a promising approach for solving NP hard combinatorial optimization problems on noisy intermediate-scale quantum (NISQ) hardware. However, its performance is critically…

Quantum Physics · Physics 2025-11-13 Rakesh Saini , Nora Mohamed , Saif Al-Kuwari , Ahmed Farouk

Effectively encoding inequality constraints is a primary obstacle in applying quantum algorithms to financial optimization. A quantum model for Markowitz portfolio optimization is presented that resolves this by embedding slack variables…

Optimization and Control · Mathematics 2026-01-08 Pablo Thomassin , Guillaume Guerard , Sonia Djebali , Vincent Marc Lambert

The Quantum Approximate Optimization Algorithm (QAOA), which is a variational quantum algorithm, aims to give sub-optimal solutions of combinatorial optimization problems. It is widely believed that QAOA has the potential to demonstrate…

The Quantum Approximate Optimization Algorithm (QAOA) by Farhi et al. is a quantum computational framework for solving quantum or classical optimization tasks. Here, we explore using QAOA for Binary Linear Least Squares (BLLS); a problem…

Quantum Physics · Physics 2021-04-27 Ajinkya Borle , Vincent E. Elfving , Samuel J. Lomonaco

Portfolio optimization is an inseparable part of strategic asset allocation at the Czech National Bank. Quantum computing is a new technology offering algorithms for that problem. The capabilities and limitations of quantum computers with…

General Economics · Economics 2023-03-06 Martin Vesely

The quantum approximate optimization algorithm (QAOA) is known for its capability and universality in solving combinatorial optimization problems on near-term quantum devices. The results yielded by QAOA depend strongly on its initial…

Quantum Physics · Physics 2022-09-29 Xinwei Lee , Ningyi Xie , Yoshiyuki Saito , Dongsheng Cai , Nobuyoshi Asai

The Quantum Approximate Optimisation Algorithm (QAOA) is a hybrid quantum-classical algorithm for solving combinatorial optimisation problems. QAOA encodes solutions into the ground state of a Hamiltonian, approximated by a $p$-level…

Quantum Physics · Physics 2025-05-16 V Vijendran , Dax Enshan Koh , Eunok Bae , Hyukjoon Kwon , Ping Koy Lam , Syed M Assad

Quantum optimization allows for up to exponential quantum speedups for specific, possibly industrially relevant problems. As the key algorithm in this field, we motivate and discuss the Quantum Approximate Optimization Algorithm (QAOA),…

Quantum Physics · Physics 2025-11-18 Jonas Stein , Maximilian Zorn , Leo Sünkel , Thomas Gabor

Portfolio optimization (PO) is extensively employed in financial services to assist in achieving investment objectives. By providing an optimal asset allocation, PO effectively balances the risk and returns associated with investments.…

Quantum Physics · Physics 2024-07-09 Zhijie Tang , Alex Lu Dou , Arit Kumar Bishwas
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