Portfolio optimizationPortfolio optimization is the process of selecting the best portfolio (asset distribution), out of the set of all portfolios being considered, according to some objective. The objective typically maximizes factors such as expected return, and minimizes costs like financial risk. Factors being considered may range from tangible (such as assets, liabilities, earnings or other fundamentals) to intangible (such as selective divestment). Modern portfolio theory was introduced in a 1952 doctoral thesis by Harry Markowitz; see Markowitz model.
Marginal costIn economics, the marginal cost is the change in the total cost that arises when the quantity produced is incremented, the cost of producing additional quantity. In some contexts, it refers to an increment of one unit of output, and in others it refers to the rate of change of total cost as output is increased by an infinitesimal amount. As Figure 1 shows, the marginal cost is measured in dollars per unit, whereas total cost is in dollars, and the marginal cost is the slope of the total cost, the rate at which it increases with output.
Hamiltonian pathIn the mathematical field of graph theory, a Hamiltonian path (or traceable path) is a path in an undirected or directed graph that visits each vertex exactly once. A Hamiltonian cycle (or Hamiltonian circuit) is a cycle that visits each vertex exactly once. A Hamiltonian path that starts and ends at adjacent vertices can be completed by adding one more edge to form a Hamiltonian cycle, and removing any edge from a Hamiltonian cycle produces a Hamiltonian path.
Use caseIn software and systems engineering, the phrase use case is a polyseme with two senses: A usage scenario for a piece of software; often used in the plural to suggest situations where a piece of software may be useful. A potential scenario in which a system receives an external request (such as user input) and responds to it. This article discusses the latter sense. A use case is a list of actions or event steps typically defining the interactions between a role (known in the Unified Modeling Language (UML) as an actor) and a system to achieve a goal.
Fixed costIn accounting and economics, 'fixed costs', also known as indirect costs or overhead costs, are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be recurring, such as interest or rents being paid per month. These costs also tend to be capital costs. This is in contrast to variable costs, which are volume-related (and are paid per quantity produced) and unknown at the beginning of the accounting year. Fixed costs have an effect on the nature of certain variable costs.
Brigadier generalBrigadier general or Brigade general is a military rank used in many countries. The rank is usually above a colonel, and below a major general or divisional general. When appointed to a field command, a brigadier general is typically in command of a brigade consisting of around 4,000 troops (four battalions). Brigadier general (Brig. Gen.) is a military rank used in many countries. It is the lowest ranking general officer in some countries, usually sitting between the ranks of colonel and major general.
Theory of constraintsThe theory of constraints (TOC) is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it. TOC adopts the common idiom "a chain is no stronger than its weakest link". That means that organizations and processes are vulnerable because the weakest person or part can always damage or break them, or at least adversely affect the outcome.
Colonel generalColonel general is a three- or four-star military rank used in some armies. It is particularly associated with Germany, where historically general officer ranks were one grade lower than in the Commonwealth and the United States, and Generaloberst was a rank above full General, but below Generalfeldmarschall. The rank of colonel general also exists in the armed forces organized along the lines of the Soviet model, where it is comparable to that of a lieutenant general in many NATO armed forces (rank code OF-8).
Morphological analysis (problem-solving)Morphological analysis or general morphological analysis is a method for exploring possible solutions to a multi-dimensional, non-quantified complex problem. It was developed by Swiss astronomer Fritz Zwicky. General morphology was developed by Fritz Zwicky, the Bulgarian-born, Swiss-national astrophysicist based at the California Institute of Technology. Among others, Zwicky applied morphological analysis to astronomical studies and jet and rocket propulsion systems.
