Chance-constrained portfolio selection

Chance-constrained portfolio selection is an advanced investment strategy that addresses uncertainty and risk in portfolio management by incorporating probabilistic constraints. Unlike traditional portfolio optimization methods that might focus solely on expected returns and risk (often measured by variance), chance-constrained approaches explicitly consider the likelihood of achieving certain financial targets. ### Key Features of Chance-Constrained Portfolio Selection: 1. **Probabilistic Constraints**: In a chance-constrained approach, constraints are formulated in terms of probabilities.