Markowitz optimization
[mahr-KOH-witz op-tuh-muh-ZAY-shuhn]
nounfemininepl: otimizações de Markowitz
otimização de Markowitz
1. A mathematical framework for constructing an investment portfolio that maximizes expected returns for a given level of risk, or minimizes risk for a given level of expected return
The portfolio manager used Markowitz optimization to allocate assets across different stocks and bonds.
O gestor de portfólio utilizou a otimização de Markowitz para alocar ativos entre diferentes ações e títulos.
2. A method developed by Harry Markowitz in 1952 that uses variance and covariance of asset returns to determine optimal portfolio weights
Markowitz optimization is a cornerstone of modern portfolio theory.
A otimização de Markowitz é uma pedra angular da teoria moderna de portfólio.
3. The process of identifying the efficient frontier by solving a quadratic programming problem with asset weights as variables
The algorithm performed Markowitz optimization to find the optimal asset allocation.
O algoritmo realizou a otimização de Markowitz para encontrar a alocação ótima de ativos.
Markowitz optimization is a fundamental concept in quantitative finance and investment management globally. In Brazil, it is widely taught in MBA programs and used by institutional investors and financial advisors. The term is technical and primarily used in academic and professional financial contexts. Harry Markowitz won the Nobel Prize in Economic Sciences in 1990 for developing this theory, making it a prestigious framework in portfolio management across both Brazilian and American financial markets.
Related Idioms & Phrases
finding the optimal portfolio mix
balancing risk and return
maximizing risk-adjusted returns
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