Author(s)

Xiaomeng Chang

Corresponding Author

Xiaomeng Chang

ABSTRACT

In this paper, the Full Markowitz Model will be used to compare different investment portfolios and make suggestions for investors on their investment decision-making process. By doing so, investors can have an overall view of the return and risks of their potential investments, and minimize risks or maximize return by choosing the optimal portfolio. To be more specific, in terms of minimizing risks, investing TD for 19.74%, PG for 28.52%, JNJ for 20.77%, and CL for 21% is the optimal portfolio. It has a return of 10.31%, a standard deviation of 11.25%, and a sharp ratio of 0.92. To maximize return, the weights of the optimal portfolio for Nividia Corporation, Cisco Systems, Intel Corporation, GS, U.S. Bancorp, TD Bank, The Allstate Corporation, P&G, J&J, and CL are 18.29%, 0.18%, -6.66%, 9.54%, 10.90%, 42.02%, 4.95%, 48.64%, 38.88%, and 18.25% respectively, with the return of 16.87%, standard deviation of 15.04%, and Sharpe ratio of 1.12.

KEYWORDS

Full Markowitz Model, Portfolio optimization, Modern Portfolio Theory, Portfolio Investing