Constrained portfolio optimisation: the state-of-the-art Markowitz models

This paper studies the state-of-art constrained portfolio optimisation models, using exact solver to identify the optimal solutions or lower bound for the benchmark instances at the OR-library with extended constraints. The effects of pre-assignment, round-lot, and class constraints based on the qua...

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Bibliographic Details
Main Authors: Jin, Yan, Qu, Rong, Atkin, Jason
Format: Conference or Workshop Item
Published: 2016
Online Access:https://eprints.nottingham.ac.uk/33887/
Description
Summary:This paper studies the state-of-art constrained portfolio optimisation models, using exact solver to identify the optimal solutions or lower bound for the benchmark instances at the OR-library with extended constraints. The effects of pre-assignment, round-lot, and class constraints based on the quantity and cardinality constrained Markowitz model are firstly investigated to gain insights of increased problem difficulty, followed by the analysis of various constraint settings including those mostly studied in the literature. The study aims to provide useful guidance for future investigations in computational algorithms