Research on the Markowitz Model-based Stock Investment Approach

Abstract

In the world of financial investments, risk is one of the hottest subjects, and diversifying your investment portfolio is one of the best ways to do so. When choosing investments, consumers always aim to reduce risk while maintaining a specific rate of return. The risk and return on a portfolio are discussed using mathematical and statistical techniques. It is made clear that there are two types of risk: systematic risk and unsystematic risk, the latter of which can be diversified through a portfolio. Since 2019, the Covid-19 epidemic in the United States has had variable degrees of impact on different businesses. Others have been stimulated while many industries have stagnated. This article examines the effects of the pandemic on the global healthcare industry while concentrating on the medical stock market. Using the investing database, each medical company's data was examined. The Markowitz model is used to study two time periods before and after the outbreak. According to specific real-world circumstances, this conclusion can assist investors in making the best investment choices for risky investment portfolios.