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Many important collective decision-making problems can be seen as multi-agent versions of discrete optimisation problems. Participatory budgeting, for instance, is the collective version of the knapsack problem; other examples include…

Artificial Intelligence · Computer Science 2021-12-02 Linus Boes , Rachael Colley , Umberto Grandi , Jerome Lang , Arianna Novaro

This study first reviews fuzzy random Portfolio selection theory and describes the concept of portfolio optimization model as a useful instrument for helping finance practitioners and researchers. Second, this paper specifically aims at…

Optimization and Control · Mathematics 2014-02-18 Mir Ehsan Hesam Sadati , Ali Doniavi

In this paper, we propose a machine learning algorithm for time-inconsistent portfolio optimization. The proposed algorithm builds upon neural network based trading schemes, in which the asset allocation at each time point is determined by…

Portfolio Management · Quantitative Finance 2023-09-06 Kristoffer Andersson , Cornelis W. Oosterlee

The portfolio optimization problem in which the variances of the return rates of assets are not identical is analyzed in this paper using the methodology of statistical mechanical informatics, specifically, replica analysis. We define two…

Portfolio Management · Quantitative Finance 2016-12-15 Takashi Shinzato

This paper considers the maximization of the expected maximum value of a portfolio of random variables subject to a budget constraint. We refer to this as the optimal college application problem. When each variable's cost, or each college's…

Optimization and Control · Mathematics 2022-05-10 Max Kapur , Sung-Pil Hong

Portfolio management is an essential part of investment decision-making. However, traditional methods often fail to deliver reasonable performance. This problem stems from the inability of these methods to account for the unique…

Portfolio Management · Quantitative Finance 2023-08-17 Petr Sokerin , Kristian Kuznetsov , Elizaveta Makhneva , Alexey Zaytsev

We consider the maximization problem of monotone submodular functions under an uncertain knapsack constraint. Specifically, the problem is discussed in the situation that the knapsack capacity is not given explicitly and can be accessed…

Data Structures and Algorithms · Computer Science 2018-03-08 Yasushi Kawase , Hanna Sumita , Takuro Fukunaga

Heuristic algorithms have shown a good ability to solve a variety of optimization problems. Stockpile blending problem as an important component of the mine scheduling problem is an optimization problem with continuous search space…

Neural and Evolutionary Computing · Computer Science 2021-02-11 Yue Xie , Aneta Neumann , Frank Neumann

I discuss some theoretical results with a view to motivate some practical choices in portfolio optimization. Even though the setting is not completely general (for example, the covariance matrix is assumed to be non-singular), I attempt to…

Portfolio Management · Quantitative Finance 2016-01-29 Vassilios Papathanakos

Motivated by modern-day applications such as Attended Home Delivery and Preference-based Group Scheduling, where decision makers wish to steer a large number of customers toward choosing the exact same alternative, we introduce a novel…

Optimization and Control · Mathematics 2025-02-13 Omar El Housni , Marouane Ibn Brahim , Danny Segev

Attempts to allocate capital across a selection of different investments are often hampered by the fact that investors' decisions are made under limited information (no historical return data) and during an extremely limited timeframe.…

General Economics · Economics 2020-04-22 Christoph J. Börner , Ingo Hoffmann , Fabian Poetter , Tim Schmitz

The first moment and second central moments of the portfolio return, a.k.a. mean and variance, have been widely employed to assess the expected profit and risk of the portfolio. Investors pursue higher mean and lower variance when designing…

Portfolio Management · Quantitative Finance 2020-08-04 Rui Zhou , Daniel P. Palomar

The blessing of ubiquitous data also comes with a curse: the communication, storage, and labeling of massive, mostly redundant datasets. We seek to solve this problem at its core, collecting only valuable data and throwing out the rest via…

Machine Learning · Computer Science 2023-12-18 Mariel Werner , Anastasios Angelopoulos , Stephen Bates , Michael I. Jordan

This paper considers the portfolio management problem of optimal investment, consumption and life insurance. We are concerned with time inconsistency of optimal strategies. Natural assumptions, like different discount rates for consumption…

Optimization and Control · Mathematics 2011-07-25 Ivar Ekeland , Oumar Mbodji , Traian A. Pirvu

We develop approximation algorithms for set-selection problems with deterministic constraints, but random objective values, i.e., stochastic probing problems. When the goal is to maximize the objective, approximation algorithms for probing…

Data Structures and Algorithms · Computer Science 2021-11-04 Weina Wang , Anupam Gupta , Jalani Williams

The problem of portfolio allocation in the context of stocks evolving in random environments, that is with volatility and returns depending on random factors, has attracted a lot of attention. The problem of maximizing a power utility at a…

Mathematical Finance · Quantitative Finance 2022-11-29 Maxim Bichuch , Jean-Pierre Fouque

We consider the fundamental problem of selecting $k$ out of $n$ random variables in a way that the expected highest or second-highest value is maximized. This question captures several applications where we have uncertainty about the…

Computer Science and Game Theory · Computer Science 2020-12-16 Aranyak Mehta , Uri Nadav , Alexandros Psomas , Aviad Rubinstein

Algorithm selection is crucial in the field of optimization, as no single algorithm performs perfectly across all types of optimization problems. Finding the best algorithm among a given set of algorithms for a given problem requires a…

Neural and Evolutionary Computing · Computer Science 2025-01-27 Saba Sadeghi Ahouei , Denis Antipov , Aneta Neumann , Frank Neumann

We study the problem of optimal subset selection from a set of correlated random variables. In particular, we consider the associated combinatorial optimization problem of maximizing the determinant of a symmetric positive definite matrix…

Computation · Statistics 2019-07-12 Yu Wang , Nhu D. Le , James V. Zidek

We apply numerical dynamic programming techniques to solve discrete-time multi-asset dynamic portfolio optimization problems with proportional transaction costs and shorting/borrowing constraints. Examples include problems with multiple…

Portfolio Management · Quantitative Finance 2020-03-05 Yongyang Cai , Kenneth Judd , Rong Xu