Article Details
  • Published Online:
    April  2025
  • Product Name:
    The IUP Journal of Applied Economics
  • Product Type:
    Article
  • Product Code:
    IJAE050225
  • DOI:
    10.71329/IUPJAE/2025.24.2.93-100
  • Author Name:
    Kshma Kaushal, Amanjot Kaur Gill and Parampal Singh
  • Availability:
    YES
  • Subject/Domain:
    Economics
  • Download Format:
    PDF
  • Pages:
    93-100
Volume 24, Issue 2, April 2025
Stock Allocation Using Grasshopper Optimization: Striking the Right Risk-Return Balance
Abstract

Introduction

Creating an optimal financial portfolio is a trivial task. To ascertain the possible profitability and dangers connected with investing in a specific asset or portfolio, investment analysis entails evaluating a number of variables. It is crucial to remember that there is no one-size-fits-all approach to investment analysis, and the particular strategies and tactics employed may change based on the kind of investment, asset class, and preferences of the individual in modern scenario (Smith, 2019). These days several metaheuristic algorithms are being used for this purpose (Anagnostopoulas & Mamanis, 2011; Bacanin & Tuba, 2014; Bayraktar et al., 2013; Haqiqi & Kazemi, 2012; Kabundi & Mwamba, 2012; Kaushal & Singh, 2018; Konstantinou et al., 2022; Niu et al., 2012; Sawaya, 2012; Zhu et al., 2011). Grasshopper optimization is an efficient algorithm proposed by Mirjalili et al. (2014), and it has been applied in this study. Grasshopper algorithm and its variants are quite popular solutions for various problems (Crawford et al., 2018; Ewees et al., 2018; Hamad et al., 2018)