Portfolio Analysis Based on 5 US Industries Assets

Abstract

Portfolio problem is the research direction of securities, finance and other markets. In order to study the situation of relevant markets and asset allocation, this paper selects the representatives of the Internet, medicine, finance, new energy vehicles and tobacco industries as the research objects. Based on the mean variance model, this paper uses CAPM model and FF model to calculate the optimal portfolio. The results show that the new energy automobile industry of the Internet is better under the CAPM model, while the financial industry performs well under the FF model. At the same time, the pharmaceutical industry can effectively reduce the risk while ensuring the income. At the same time, this paper discusses the portfolio under the condition of adding etf to further reduce risk. Under the condition of pursuing high Sharpe ratio and low risk, it can greatly affect the optimal portfolio. The research results are helpful to relevant investors.