A mathematical process which creates a compromise between conflicting objectives (e.g. between maximising return and minimising risk). An optimisation program will identify the asset mix which is likely to give the highest return for a given risk level, or alternatively, the lowest risk portfolio to achieve a desired return. See also portfolio optimisation.

The content of this site is not for the use of Hong Kong investors, however it does provide you (Hong Kong investors) with a secure customer login.