Abstract

Computers that leverage the power (and mysteries) of quantum mechanics are available today, and for some specialized problems, they have been shown to provide significant speed advantages over digital computers. What are the implications of this technology for portfolio managers and others working in the field of computational finance? This article introduces some of the fundamental concepts of quantum computing and presents an example of using a quantum annealer for solving a multiperiod portfolio optimization problem. <b>TOPICS:</b>Quantitative methods, portfolio construction

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