Portfolio optimization services in global network

The implementation of the Modern Portfolio Theory in Internet as information services is considered. The portfolio investment is worked out as an on line service in WAN. The key problem of developing such a service is the definition and the solution of a set of optimization problems and the interaction of the results with the Web application server. All interactions and data negotiations must be subject to real time restrictions towards the computation and applications processes. Two models for the optimal portfolio problems are worked out and incorporated in the application server. The first model solves in real time a linear-quadratic optimization problem, the second model implements short sales in the investment process. Performance experiments are done and the application server functionality is presented.