Dynamic asset allocation with expected shortfall via quantum annealing

HIGHLIGHTS

  • who: Hanjing Xu and collaborators from the Department of Computer Science, Purdue University, West Lafayette, IN, USA have published the paper: Dynamic Asset Allocation with Expected Shortfall via Quantum Annealing, in the Journal: Entropy 2023, 25, 541. of /2023/
  • what: The authors propose a hybrid quantum-classical algorithm to solve a asset allocation problem where a target return and a target risk metric (expected are specified. The authors propose an iterative algorithm that treats the target return as a constraint in a Markowitz portfolio optimization model and dynamically adjusts the target return to satisfy the . . .

     

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