Utilizing risk minimization for portfolio management

Portfolio risk minimization is sought by investment managers with an ideally large expected return. By evaluating the variance and covariance of given stocks, the number of shares to be purchased relating to a predetermined return can be sought. Lagrange multipliers, used to simplify non-linear equations, will expand the linear programming capabilities of analytical software. These tools can be effectively used by portfolio managers in the quest for superior returns and associated lowered risk.