Portfolio Analysis Based on the U.S. Stock Market
DOI:
https://doi.org/10.54691/bcpbm.v44i.4802Keywords:
Portfolio; mean-variance model; index model; U.S. stock market.Abstract
As investors place more and more importance on stocks as a financial instrument, how to construct a portfolio of securities in order to avoid risks and obtain more excess profits has become an important issue in the financial world. This paper analyzes the assets of ten representative companies in different industries in the U.S. stock market. The paper uses the closing price data of these ten companies for the past 20 years to construct the optimal portfolio by means of mean-variance model and index model. The results show that in the mean-variance and index models, PG has the highest weight in the minimum variance portfolio, while AAPL in the maximum Sharpe ratio portfolio tends to have the largest weight and can be considered for inclusion in the portfolio at the time of investment. The results of this research may be useful to potential investors interested in the relevant areas of the U.S. stock market.
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