Portfolio optimization
Portfolio optimization is a process used in Finance and Investment to maximize the return of a portfolio while minimizing its risk, by allocating assets in an optimal way. This involves analyzing various factors such as Risk management, Diversification, and Expected return. The goal of portfolio optimization is to create a portfolio that meets the investor's objectives, such as achieving a certain level of return or minimizing losses. Various techniques are used in portfolio optimization, including Linear programming, Quadratic programming, and Stochastic optimization. Harry Markowitz, a Nobel laureate in economics, is known for his work on portfolio optimization, which introduced the concept of Modern portfolio theory.