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Are constraints on the number of assets in the portfolio and the number of assets traded really useful?

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Are constraints on the number of assets in the portfolio and the number of assets traded really useful?

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When generating random portfolios, these constraints are fairly typically what you actually want. In optimization they are often really just a convenient shortcut for threshold constraints. A threshold constraint says that a trade or a portfolio position needs to be of at least a certain size if it exists at all. So, yes they are useful but imposing threshold constraints might be what you really mean.

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