Application of Optimization Problems in Finance

Author(s)	Dr. Madhavi Balaji Kunchi
Country	India
Abstract	Optimization plays a vital role in financial decision-making by providing mathematical frameworks to achieve optimal results under constraints. Modern finance deals with uncertainty, limited resources, and risk-return trade-offs. Optimization techniques help in portfolio selection, asset allocation, risk management, capital budgeting, derivative pricing, and financial planning. This paper presents a comprehensive and systematic study of optimization problems in finance, covering classical and modern techniques such as linear programming, nonlinear programming, quadratic programming, stochastic optimization, and dynamic programming. The study emphasizes theoretical foundations as well as practical relevance in real-world financial systems.
Keywords	Optimization problems, Linear programming, Stochastic optimization
Field	Mathematics > Statistics
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-27
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64761

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