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Quantum Machine Learning and Optimisation in Finance

You're reading from   Quantum Machine Learning and Optimisation in Finance Drive financial innovation with quantum-powered algorithms and optimisation strategies

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Product type Paperback
Published in Dec 2024
Publisher Packt
ISBN-13 9781836209614
Length 494 pages
Edition 2nd Edition
Languages
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Authors (2):
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Jacquier Antoine Jacquier Antoine
Author Profile Icon Jacquier Antoine
Jacquier Antoine
Alexei Kondratyev Alexei Kondratyev
Author Profile Icon Alexei Kondratyev
Alexei Kondratyev
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Table of Contents (21) Chapters Close

Preface 1. Chapter 1 The Principles of Quantum Mechanics FREE CHAPTER 2. Part I Analog Quantum Computing – Quantum Annealing
3. Chapter 2 Adiabatic Quantum Computing 4. Chapter 3 Quadratic Unconstrained Binary Optimisation 5. Chapter 4 Quantum Boosting 6. Chapter 5 Quantum Boltzmann Machine 7. Part II Gate Model Quantum Computing
8. Chapter 6 Qubits and Quantum Logic Gates 9. Chapter 7 Parameterised Quantum Circuits and Data Encoding 10. Chapter 8 Quantum Neural Network 11. Chapter 9 Quantum Circuit Born Machine 12. Chapter 10 Variational Quantum Eigensolver 13. Chapter 11 Quantum Approximate Optimisation Algorithm 14. Chapter 12 Quantum Kernels and Quantum Two-Sample Test 15. Chapter 13 The Power of Parameterised Quantum Circuits 16. Chapter 14 Advanced QML Models 17. Chapter 15 Beyond NISQ 18. Bibliography
19. Index 20. Other Books You Might Enjoy

2.2 Principles of Adiabatic Quantum Computing

Adiabatic quantum optimisation is a promising approach to solving NP-complete and NP-hard problems [97]. Assume that a solution to the optimisation problem is encoded in the ground state (i.e., the quantum state corresponding to the lowest eigenvalue) of a quantum Hamiltonian HF . By the second postulate of quantum mechanics (Section 1.2.2), the dynamics of a quantum system is fully specified by its Hamiltonian. If we know how to encode the objective function that we want to minimise in the Hamiltonian of a quantum system, then finding the ground state of the Hamiltonian is equivalent to finding the set of decision variables that minimises the objective function.

As a simple example of equivalence between the minimum of a function and the ground state of a Hamiltonian, consider a function f : {0,1}n that needs to be minimised and take the Hamiltonian

 ∑ HF := n f(z) |z⟩ ⟨z|. z∈{0,1}

Clearly, for any z0 ∈{0,1}n,

 ( ∑ ) HF |z0⟩ = ( f(z) |z⟩⟨z|) |z0⟩ = f(z0) |z0⟩⟨z0|z0⟩ = f(z0) |z0⟩, z∈{0,1}n

since the computational...

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