Financial Portfolio Optimization Method Based on the Quantum Linear Discriminant Analysis

This paper reduces the Markowitz’s model to the Quantum Linear Discriminant Analysis (QLDA) model. Hermitian Chain Product (HCP) and Density Matrix Exponentiation (DME) are used to solve the optimal solution with the largest Sharpe rate in the Markowitz mean-variance model. The quantum continuous portfolio optimization scheme can achieve quasi-exponential acceleration compared to the classical scheme.