Desired Gain Index → Target Return Selection (TRS)
In quantitative breeding, the Desired Gain Index is used when the breeder defines an explicit future objective.
The financial equivalent is Target Return Selection (TRS), where the investor specifies a desired future CAGR.
Core Constraint
Σ bᵢ · Δxs,i = G*
Meaning of Terms
- G* – Desired annualized return (CAGR target)
- Δxs,i – Expected improvement in factor i
- bᵢ – Weight of factor i
Interactive Target Return Selection (TRS) Calculator
| Factor | Δxs,i (Expected Improvement) |
bᵢ (Weight) |
|---|
Interpretation:
TRS selects stocks whose combined improvement profile is just sufficient to meet the desired future CAGR.
TRS selects stocks whose combined improvement profile is just sufficient to meet the desired future CAGR.
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