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Optimal Portfolio Allocation Problem Statement: You work for a prestigious investment firm that manages a large number of clients' portfolios. Your task is to develop
Optimal Portfolio Allocation
Problem Statement:
You work for a prestigious investment firm that manages a large number of clients' portfolios.
Your task is to develop a program that determines the optimal allocation of assets in a given
investment portfolio.
The portfolio consists of different assets, each with an associated expected return and
risk level. Your program should take as input the expected return and risk of each asset, along
with the total investment amount available. The goal is to find the allocation of assets that
maximizes the portfolio's expected return while keeping the risk within a specified tolerance
level.
Your program should solve this problem using two different algorithm paradigms: Brute
Force and Dynamic Programming.
Project Part : Brute Force Approach
Implement a brute force algorithm to exhaustively search all possible asset allocations within
the given investment amount. Evaluate the return and risk of each allocation and find the one
that maximizes the expected return while keeping the risk within the specified tolerance level.IDofasset : Expectedreturn : Risklevel : Quantityunits
Example.txt:
Example :
AAPL : ::
GOOGL : ::
MSFT : ::
Total investment is units
Risk tolerance level is
Example :
AMZN : ::
TSLA : ::
FB : ::
Total Investment is units
Risk Tolerance Level is
Output Sample:
Example : Optimal Allocation:
AAPL: units
GOOGL: units
MSFT: units
Expected Portfolio Return:
Portfolio Risk Level:
Example :
Optimal Allocation:
AMZN: units
TSLA: units
FB: units
Expected Portfolio Return:
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