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Constrained quadratic optimisation

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Abstract

 

These pages set out the mathematics behind constrained quadratic optimisation, as implemented using a variant of the Simplex algorithm, and this sort of optimisation relates to traditional Markowitz (i.e. mean-variance) portfolio optimisation.

 

Contents

 

1.       The canonical problem

2.       Solving the canonical problem

3.       Setting up the ‘super’-problem

4.       Updating the tableau

5.       Finishing the algorithm

6.       Portfolio optimisation

 

Tools

References

 


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