Title: Capital Budgeting Problems: A Parameterized Point of View
Abstract: A fundamental financial problem is budgeting. A firm is given a set of financial instruments $$X=\{x_1,\ldots ,x_n\}$$ over a number of time periods T. Every instrument $$x_i$$ has a return of $$r_i$$ and for time period $$t=1,\ldots ,T$$ a price of $$p_{t,i}$$ . Further for every time period t there is budget $$b_t$$ . The task is to choose a portfolio $$X'$$ from X such that for every time period $$t=1,\ldots ,T$$ the prices of the portfolio do not exceed the budget $$b_t$$ and the return of the portfolio is maximized. We study the fixed-parameter tractability of the problem. For a lot of small parameter values we obtain efficient solutions for the capital budgeting problem. We also consider the connection to pseudo-polynomial algorithms.
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 2
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