# Understanding the penalty term in portfolioOptimization using qiskit

The equality constraint 1ᵀ𝑥=𝐵 is mapped to a penalty term (1ᵀ𝑥−𝐵)² which is scaled by a parameter and subtracted from the objective function

Questions:

1. what does T mean in the equation?

2. what does this mean "scaled by a parameter"

3. Since quantum computers follow linear algebra, instead of dividing, we are subtracting the term?Is yes, why its exponent is 2?

Sorry, too many questions, but they are related to the same sentence

• T means the transpose, scaled by parameter (I think) means that the result of the penalty is being re-scaled by another number (multiplication), the exponent 2 I guess is just to make the penalty always positive and I don't understand why the dividing comment.
– R.W
Apr 25 at 19:59