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Portfolio Optimization with Economic Exposure Custom Constraints

With continued growth in international trade, companies today operate in different regions across the globe. This exposes their assets, revenues, and earnings to multiple economic activities in regions other than their home country. The concept of Economic Exposure (EE) can be broadly defined as the sensitivity of a company’s performance to the economies of the countries where it does business. There are many ways of defining economic exposure; some of them are sales, assets, operating income, and capital expenditure.