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Journal of Financial and Quantitative Analysis Vol. 8 No. 4 1973

A Linear Programming Formulation of the General Portfolio Selection Problem

Bernell K. Stone

Abstract

Almost two decades ago, Markowitz [12] formulated the portfolio selection problem as a parametric quadratic programming problem. The crux of his formulation was the mean-variance assumption which asserted that a portfolio is efficient if (and only if): (1) it has less variance than any other feasible portfolio with the same return and (2) it has more return than any other feasible portfolio with the same variance.

DOI
10.2307/2329828
Volume
8
Issue
4
Pages
621
Sources
openalex crossref

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