Portfolio Designed Based on Combination of EIF Stocks, Futures, and Bonds

Abstract

Contemporarily, investing in mutual funds have been a general trend for ordinary investors, as people hold the wish to earn the extra returns from the market. Among various underlying assets, portfolios are favorable ascribed to its risk separation based on the combinations of multiple assets. In this paper, the way to effectively use the limited initial capital based on investment in securities investment in order to obtain maximum benefit will be investigated and discussed in terms of model establishment and data derivation. According to the analysis, investors use the three stocks as a portfolio to diversify their investments, so that they can maximize profits and minimize risk. Moreover, according to the rise and fall rates of the three stocks in the previous period, the proportion that investors should allocate to the three stocks is obtained. These results shed light on guiding further exploration of investing in a portfolio of securities and allocating funds.