Generalized Approach of Some Portfolio Optimization

Abstract

The process of forming an investment portfolio though portfolio improvement targets to improve expected return for a given level of risk or diminishes risk relative to a specific rate of return. It involves selecting the best asset combination to achieve the best desired investment objectives. The principal of portfolio optimization is the based on the principal of diversification which offers that are investor can reduce overall portfolio risk without sacrificing potential returns by combination a variety of assets with different levels of risk and return.