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We investigate the performance of the Kelly rule in a setting in which the dynamics of the return is represented by a time change process. We find that in this general semi-martingale setting the Kelly rule does not maximize the average…

Mathematical Finance · Quantitative Finance 2026-03-17 Umberto Cherubini

In this paper, we present a probabilistic numerical algorithm combining dynamic programming, Monte Carlo simulations and local basis regressions to solve non-stationary optimal multiple switching problems in infinite horizon. We provide the…

Numerical Analysis · Mathematics 2019-06-04 René Aïd , Luciano Campi , Nicolas Langrené , Huyên Pham

Stochastic gradient methods are scalable for solving large-scale optimization problems that involve empirical expectations of loss functions. Existing results mainly apply to optimization problems where the objectives are one- or two-level…

Optimization and Control · Mathematics 2018-01-15 Shuoguang Yang , Mengdi Wang , Ethan X. Fang

We introduce a robust variant of the Kelly portfolio optimization model, called the Wasserstein-Kelly portfolio optimization. Our model, taking a Wasserstein distributionally robust optimization (DRO) formulation, addresses the fundamental…

Portfolio Management · Quantitative Finance 2023-02-28 Jonathan Yu-Meng Li

Maintaining the pair similarity relationship among originally high-dimensional data into a low-dimensional binary space is a popular strategy to learn binary codes. One simiple and intutive method is to utilize two identical code matrices…

Information Retrieval · Computer Science 2018-11-28 Xiaoshuang Shi , Fuyong Xing , Zizhao Zhang , Manish Sapkota , Zhenhua Guo , Lin Yang

We consider a monotone submodular maximization problem whose constraint is described by a logic formula on a graph. Formally, we prove the following three `algorithmic metatheorems.' (1) If the constraint is specified by a monadic…

Data Structures and Algorithms · Computer Science 2018-07-13 Masakazu Ishihata , Takanori Maehara , Tomas Rigaux

The celebrated Monte Carlo method estimates an expensive-to-compute quantity by random sampling. Bandit-based Monte Carlo optimization is a general technique for computing the minimum of many such expensive-to-compute quantities by adaptive…

Machine Learning · Computer Science 2021-04-30 Vivek Bagaria , Tavor Z. Baharav , Govinda M. Kamath , David N. Tse

In modern portfolio theory, the balancing of expected returns on investments against uncertainties in those returns is aided by the use of utility functions. The Kelly criterion offers another approach, rooted in information theory, that…

Risk Management · Quantitative Finance 2015-03-13 Ole Peters

Robust optimization typically follows a worst-case perspective, where a single scenario may determine the objective value of a given solution. Accordingly, it is a challenging task to reduce the size of an uncertainty set without changing…

Optimization and Control · Mathematics 2022-09-02 Marc Goerigk , Mohammad Khosravi

Qualitative reasoning is an important subfield of artificial intelligence where one describes relationships with qualitative, rather than numerical, relations. Many such reasoning tasks, e.g., Allen's interval algebra, can be solved in…

Computational Complexity · Computer Science 2022-10-03 Leif Eriksson , Victor Lagerkvist

Evolutionary algorithms are particularly effective for optimisation problems with dynamic and stochastic components. We propose multi-objective evolutionary approaches for the knapsack problem with stochastic profits under static and…

Neural and Evolutionary Computing · Computer Science 2024-04-15 Kokila Kasuni Perera , Aneta Neumann

In 2009, Roeglin and Teng showed that the smoothed number of Pareto optimal solutions of linear multi-criteria optimization problems is polynomially bounded in the number $n$ of variables and the maximum density $\phi$ of the semi-random…

Data Structures and Algorithms · Computer Science 2015-03-17 Tobias Brunsch , Heiko Roeglin

The scaling laws guiding modern model training were calibrated for a single regime: data-rich, single-epoch pretraining. The dominant such scaling law form, Chinchilla's $L = E + A/N^\alpha + B/D^\beta$, has three structural limitations…

Machine Learning · Computer Science 2026-05-12 Christopher M. Bryant , Hao Liu

Maximum likelihood estimation (MLE) is a fundamental computational problem in statistics. In this paper, MLE for statistical models with discrete data is studied from an algebraic statistics viewpoint. A reformulation of the MLE problem in…

Statistics Theory · Mathematics 2014-05-27 Jose Israel Rodriguez

Robust optimization is a popular paradigm for modeling and solving two- and multi-stage decision-making problems affected by uncertainty. In many real-world applications, the time of information discovery is decision-dependent and the…

Optimization and Control · Mathematics 2022-08-24 Phebe Vayanos , Angelos Georghiou , Han Yu

We study the problem of resource provisioning under stringent reliability or service level requirements, which arise in applications such as power distribution, emergency response, cloud server provisioning, and regulatory risk management.…

Optimization and Control · Mathematics 2025-04-11 Anand Deo , Karthyek Murthy

Submodular maximization is a general optimization problem with a wide range of applications in machine learning (e.g., active learning, clustering, and feature selection). In large-scale optimization, the parallel running time of an…

Data Structures and Algorithms · Computer Science 2023-04-11 Matthew Fahrbach , Vahab Mirrokni , Morteza Zadimoghaddam

In this paper, we introduce a family of sequential decision-making problems, collectively termed the Keychain Problem, that involve exploring a set of actions to maximize expected payoff when only a subset of actions are available in each…

Computer Science and Game Theory · Computer Science 2026-02-13 Ramiro N. Deo-Campo Vuong , Robert Kleinberg , Aditya Prasad , Eric Xiao , Haifeng Xu

We present new large-scale algorithms for fitting a subgradient regularized multivariate convex regression function to $n$ samples in $d$ dimensions -- a key problem in shape constrained nonparametric regression with applications in…

Optimization and Control · Mathematics 2023-12-06 Wenyu Chen , Rahul Mazumder

In this work, we propose different formulations and gradient-based algorithms for deterministic and stochastic bilevel problems with conflicting objectives in the lower level. Such problems have received little attention in the…

Optimization and Control · Mathematics 2023-11-08 Tommaso Giovannelli , Griffin Dean Kent , Luis Nunes Vicente