Knapsack model and its solution for portfolio optimization problem from perspective of resource allocation

This paper aims to propose a knapsack model based on optimization approach and overall framework for the new direction of intelligent financial optimization in portfolio theory. Based on the investigation and analysis of portfolio theory research, this paper demonstrates the necessity of portfolio theory research to develop in the direction of intelligent financial optimization, puts forward the overall framework of portfolio theory research and the new direction of intelligent financial optimization, and compares and explains the classical financial optimization, intelligent financial optimization and behavioral finance. It points out that intelligent financial optimization synthesizes the advantages of classical financial optimization based on optimal solution and behavioral finance based on coordinated solution. From the perspective of resource allocation, this paper expounds the feasibility of portfolio theory research to develop intelligent financial optimization. With the help of connection and linkage from the perspective of resource allocation, a mapping relationship between the mathematical model of portfolio problem and the knapsack problem is established, so that the former can be transformed into a combinatorial optimization model such as the knapsack model for solving. The knapsack model and the meta-heuristic algorithm for solving the portfolio problem are described from the operational implementation level, which can provide reference for solving the portfolio problem with knapsack model and algorithm.