Industry Asset Allocation Portfolio Analysis

Abstract

Since the beginning of the 21st century, there have been many excellent fund managers, but excellent asset portfolios are rare. Therefore, it is of great interests to implement in-depth investigations on this issue. In this paper, Markowitz model and Index model are selected to measure the returns and volatility of ten different excellent assets to get a better result. At the same time, according to the preferences of different customers, five different constraints are selected to meet the characteristics of more groups. Based on this, this paper optimizes the asset portfolio. This result shows that: First, when the Markowitz model and the Index model are combined with the capital market line and the efficient frontier, it is very effective to apply it to the risk asset portfolio. Second, Alaska Air Group and Hawaiian Holdings tend to be short under various constraints, while Wells Fargo is the opposite. It is of great significance to the research on the optimal allocation of financial assets in the industry.