Pricing Perspective: Formalization Blueprint

2.3 Portfolio choice

Theorem 22 Certified minimizer

Every nonempty compact feasible subset of the long-only simplex admits a minimizer of the continuous certified-variance objective. Any pointwise variance certificate on that set is inherited at the minimizer.

Proof

Continuity of the objective and compactness of the nonempty feasible set give existence by the extreme-value theorem; the pointwise certificate then holds at the selected feasible point.