Portfolio Optimization, Heuristics and The 'Butterfly Effect'

Nawrocki, David N.
February 2000
Journal of Financial Planning;Feb2000, Vol. 13 Issue 2, p68
Academic Journal
According to the author of this article, a phenomenon called the "butterfly effect" applies to portfolio optimizers just as much as it does to the global weather system. In this article, he discusses the drawbacks of portfolio optimizers and presents heuristic algorithms as a possible solution.


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