Abstract

A stock represents the capital a company or corporation raises by issuing and subscribing shares. The stock market is a term used to describe the physical location where the buying and selling as well as overall market activity takes place. Companies issue stocks to acquire capital while investors buy them to own a portion of the company. Investors buy stocks with the belief that the company will grow continuously to raise the value of their shares. Every shareholder in a company will have a say on how the company runs. Making investment among various financial enterprises, industries and other categories is associated by a risk factor. Diversification is a technique that is used to mitigate the effects of such risks and creating a portfolio of stocks is the technique used in diversification. In this study, effort has been taken to describe three of the most important portfolio optimization algorithms viz. Genetic Algorithm, Particle Swarm Optimization, Simulated Annealing.

Keywords:

Genetic algorithm, Markowitz model, particle swarm optimization, portfolio, portfolio management, portfolio optimization, simulated annealing,

References

Competing interests

The authors have no competing interests.

Open Access Policy

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Copyright

The authors have no competing interests.