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Portfolio optimization is the process of selecting an optimal portfolio (asset distribution), out of a set of considered portfolios, according to some objective. The objective typically maximizes factors such as expected return, and minimizes costs like financial risk, resulting in a multi-objective optimization problem. Factors being considered may…
Products, Optimization methods & Improving portfolio optimization
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portfolio risk optimization portfolios asset constraints isbn assets return management expected utility returns investment optimal may costs approach process efficient
| Subject | Predicate | Object | Confidence | Src |
|---|---|---|---|---|
| Portfolio optimization | is a | process of selecting an optimal portfolio | 0.90 | text |
| expected return | instance of | The objective typically maximizes factors | 0.80 | text |
| and minimizes costs like financial risk | instance of | The objective typically maximizes factors | 0.80 | text |
| resulting in a multi-objective optimization problem | instance of | The objective typically maximizes factors | 0.80 | text |
| taxes | instance of | When the portfolio optimization process is subject to other constraints | 0.80 | text |
| transaction costs | instance of | When the portfolio optimization process is subject to other constraints | 0.80 | text |
| and management fees | instance of | When the portfolio optimization process is subject to other constraints | 0.80 | text |
| the optimization process may result in an under-diversified portfolio.Regulation | instance of | When the portfolio optimization process is subject to other constraints | 0.80 | text |
| taxesInvestors may be forbidden by law to hold some assets | instance of | When the portfolio optimization process is subject to other constraints | 0.80 | text |
| autoregression | instance of | Allowing the modeling process to allow for empirical characteristics in stock returns | 0.80 | text |
| asymmetric volatility | instance of | Allowing the modeling process to allow for empirical characteristics in stock returns | 0.80 | text |
| skewness | instance of | Allowing the modeling process to allow for empirical characteristics in stock returns | 0.80 | text |
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