We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 January 1999 Financial Analysts Journal Volume 55, Issue 1

Multiple-Benchmark and Multiple-Portfolio Optimization

  1. Ming Yee Wang

Numerous real-life portfolio optimization problems require consideration of more than one benchmark and/or more than one portfolio. These problems are formulated in a way that seems to be more complicated than the standard problem of mean–tracking-error-variance optimization. In fact, however, these diverse problems can be reduced to the standard case and solved with the same algorithm. This article provides solutions to the dual-benchmark problem, the portfolio partition problem, and the completion portfolio problem. Such solutions and applications are important to both portfolio managers and plan sponsors.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content