Design of Optimum Portfolio Scheme Based on Improved NSGA-II Algorithm
Yiqian Zhou1, Weinan Chen1, Deqin Lin2
1Faculty of Business, City University of Macau, Macau 999078, China.
Abstract:
In the financial industry, it is of great significance to study the multiobjective portfolio optimization for obtaining a reasonable investment strategy. This paper designs the financial portfolio scheme based on the multiobjective optimization algorithm that is based on the framework of the NSGA-II algorithm. In order to introduce convergence information, aiming at the actual problem of the portfolio, the mixed individual coding mechanism with asset information expands the application of the multiobjective evolutionary algorithm in portfolio optimization. The portfolio scheme obtained is effective, which is helpful to improve the decision-making efficiency of financial investors and enriches the application of modern financial theory.
More Related Videos
Related Concept Videos
Routh-Hurwitz Criterion II
The first scenario occurs when a singular zero appears in the first column of the Routh table. This situation creates a division by zero issues. To resolve this, a small positive or negative number, denoted as epsilon (∈), is substituted for the zero. The stability analysis proceeds by assuming a sign for ∈. If ∈ is positive, any sign change in the first...
Mechanistic Models: Compartment Models in Algorithms for Numerical Problem Solving
In individual population analyses, different algorithms are employed, such as Cauchy's method, which uses a...
Factorial Design
Optimal Foraging
Routh-Hurwitz Criterion I
To apply the Routh-Hurwitz criterion, a Routh table is constructed. The table's rows are labeled with powers of the complex frequency variable s, starting from the...
SFG Algebra
Each node in an SFG corresponds to a variable, and the interactions between nodes are represented by branches with associated gains. When multiple branches lead into a node, the value at that node is the sum of the...


