Quant Memo
Coding/●●●●

Allocate a fixed budget across strategies

Asked at Two Sigma, DE Shaw

You can fund each strategy at most once. Strategy i needs costs[i] of capital and is expected to earn profits[i]. With a total budget, choose a subset that maximizes expected profit without overspending.

costs   = [2, 3, 4]
profits = [3, 4, 5]
budget  = 5
-> 7        # fund strategies 0 and 1: cost 2+3=5, profit 3+4=7

Return the maximum total profit fitting within the budget (0/1 knapsack). Each strategy is all-or-nothing.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

More Coding questions