Author(s)

Mengyuan Zhang

Corresponding Author

Mengyuan Zhang

ABSTRACT

In the past few years, people focus more on portfolio selection and stock investment. It is increasingly significant to help investors to maximize their returns while minimizing the associated risks. In this paper, Full Markowitz Model is used as a basis to analyze and build portfolios. The dataset includes a recent 20 years of historical daily total return data from ten stocks. All optimal optimization inputs are calculated based on the monthly observations, including efficient frontier, minimal risk portfolio, optimal portfolio, and minimum portfolios frontier. Also, the optimal portfolios are also built based on the five cases of the additional constraints in real life. These optimization results help investors to choose their portfolios according to their needs.

KEYWORDS

Markowitz Model, risk, optimization, portfolio selection