Property Researches Of The Genetic Algorthms Andits' Application In The Portfolio Investment

The genetic algorithm is a kind of searching method which simulates the natural evolution.lt is simple and easy to implement,especially it doesn' t need the special field knowledge , but simply uses fitness function as an assessment to instruct the search process,so it has been used in very broad fields. Now the genetic algorithm has got a lot of fruits and scholars begin to pay attention to it .The main content of the paper is discussing the theory of the genetic algorithm and the application of the genetic algorithm in portfolio investment . In addition, I propose reliable and efficient algorithm to solve relevant problem.Firstly, this paper gives a brief introduction to the basic conception and theories of the genetic algorithm .And it also provides a detailed explanation on the components of the genetic algorithm , with the emphasis on the strategies of selection, crossover,mutation and the basic theorem -Schema theorem. Secondly, based on the study of the basic structure and flow diagram of the traditional genetic algorithm, some improvement is given:A selection method is proposed about the settled initiated population improvement and the norm is used to measure the selection method of the difference of chromosome;to overcome the disadvantage of the genetic algorithm, a general genetic algorithm is designed桾NGA, GATS and IAGA;in the following chapters, the paper proves the convergence of the genetic algorithm ,using the functional analysis and the convergence of simple genetic algorithm is illumiunated by the analysis of the Markov chain. Finally, the paper does some research work on the practical application and puts forward three improved genetic algorithm to solve the best portfolio investment . Some programs are designed to find out the best portfolio investment ,and this shows the feasibility and validity of these methods.