Timeline for Continuous optimization
Current License: CC BY-SA 2.5
6 events
| when toggle format | what | by | license | comment | |
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| Aug 20, 2010 at 23:26 | comment | added | user3875 | I think the latter condition makes the greedy approach non-optimal. Presumably there is some other strategy that may "fit" better into the timeline so that less time goes "unused" and consequently yield a higher total return (depending of the specific rates of return. I'm not sure if it is obvious that there exists a $T$ such that one strategy will dominate all others for all $t > T$. | |
| Aug 20, 2010 at 15:19 | comment | added | KalEl | Also if the $t\rightarrow\infty$ condition is removed, the solution hardly changes - then at each repeat you will keep investing your money at the class given by the same formula. Only you need to be careful that at each repeat of the investment, you must not consider the classes which takes longer to mature than the time you have remaining. | |
| Aug 20, 2010 at 15:16 | comment | added | KalEl | Yes, but it won't matter as $t\rightarrow\infty$. That condition effectively means you don't know when the system will end, and you keep repeating your investments for ever. | |
| Aug 19, 2010 at 22:15 | comment | added | user3875 | Yes I agree with the problem raised by Gilead. Profits are only realized at discrete time intervals. | |
| Aug 19, 2010 at 18:37 | comment | added | Gilead | I'm thinking while this maximizes overall profit, but it doesn't account for the fact that a given time $t$, not all investments have reached maturity, hence the payout at time $t$ is not necessarily optimal. What do you think? | |
| Aug 19, 2010 at 16:16 | history | answered | KalEl | CC BY-SA 2.5 |