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Schrodinger Control Optimal Planning for Goal-Based Wealth Management

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Erwin Schrdinger. Nobel foundationhttp://nobelprize.org/nobel_prizes/physics/laureates/1933/schrodinger-

Is the wealth management problem a quantum control problem in disguise?

Leaving jokes aside, I believe that the answer to this question becomes affirmative in a very precise sense encoded in the word disguise, which means here mathematically equivalent. Though establishing this equivalence was not specifically my initial objective, this is a by-product of my latest research that I am very happy to share here.

Erwin Schrdinger as a young man

More specifically, the new paper shows that the framework of quantum mechanics. Furthermore, more specifically of quantum optimal control.

Schrdinger equation

Moreover, the exact mathematical framework where the problem of optimal retirement planning can be solved in the most tractable way. As quantum control can be very naturally (at least in theory) implemented with quantum computers, potential applications of quantum computing to wealth management modeling can be a very interesting venue for future research.

This paper addresses a problem routinely solved (or at least supposed to be routinely solved) by millions of working individuals who participate in retirement saving plans such as the 401(K) plans in the US, or similar programs worldwide. The problem is to plan an optimal contribution schedule to their investment portfolio so that their wealth by the time of retirement will be above a certain target wealth level at a certain probability confidence level.

Newtons laws of motion, combined with his law of gravity, allow the prediction of howplanets,moons, and other objects orbit through theSolar System, and they are a vital part of planningspace travel. During the 1968Apollo 8mission, astronautBill Anderstook this photo,Earthrise; on their way back to Earth, Anders remarked, I thinkIsaac Newtonis doing most of the driving right now.[1]

NASA/Bill Andershttp://www.hq.nasa.gov/office/pao/History/alsj/a410/AS8-14-2383HR.jpg

Unlike the passive dynamics problem of the conventional quantum mechanics, in tasks of quantum control, the objective is to control the Schrodinger potential in order to bring a quantum system into a desired terminal state at a smallest cost or in a shortest time. In the same way, here we control the degree of non-linearity of the Morse potential and the initial particle position in order to achieve a desired quantum mechanical terminal state.

In this sense, the statement in the title now reads:

The wealth management problem is a quantum optimal control problem in disguise.

Dr. Igor Halperin

See original here:

Schrodinger Control Optimal Planning for Goal-Based Wealth ... - Rebellion Research