Portfolio Shading up - A Portfolio composed by NVDA, NVO, KO AND C Using Efficient Frontier and Mean Variance Analysis

Zijiao Liang

doi:10.54691/bcpbm.v44i.4930

Authors

Zijiao Liang

DOI:

https://doi.org/10.54691/bcpbm.v44i.4930

Keywords:

Mean-Variance analysis; Efficient Frontier; Risk; Return.

Abstract

This article illustrates that since last century investment becomes more and more popular as a way for people to save or spend money, but during the recovery of the pandemic, how we could make a suitable investment. This article, it demonstrates how to make an optimal portfolio with high return and low risk, with the introduction of the Variance and Mean model and efficient frontier, accompanied with the aid of Excel functions, and let it helps to get the solution best fitted in our expectations. The companies we chose for this portfolio are NVDA, KO, C and NVO, which are outstanding firms from four different industries. And another method of shading up the portfolio is also mentioned in this article, Potter's five force analysis and ESG analysis and rating scale, in a way that could increase the practical usefulness and validity in the reality of our portfolio. And these measures are also expected to be used in the future portfolio shading up.

Downloads

Download data is not yet available.

References

Lynch, P., & Rothchild, J. (2000). One up on Wall Street: how to use what you already know to make money in the market. Simon and Schuster.

Maital, S., & Barzani, E. (2020). The global economic impact of COVID-19: A summary of research. Samuel Neaman Institute for National Policy Research, 2020, 1 - 12.

Corportation, N. V. I. D. I. A. (2022). About Us. NVIDIA. Retrieved February 9, 2023, from https://www.nvidia.com/en-us/about-nvidia/#slide-98-d7b608ae.

Nordisk, N. (2023). Financial results, events and calendar. Financial results and events Overview - Novo Nordisk. Retrieved February 5, 2023, from https://www.novonordisk.com/investors/financial-results.html.

Inc, C. (2023). Global Investment Bank and financial services. Citi. Retrieved February 9, 2023, from https://www.citigroup.com/global.

Co, C.-cola. (2022). More than a beverage company. The Coca-Cola Company. Retrieved February 9, 2023, from https://www.coca-colacompany.com/company.

Chen, J. (2022, February 8). Mean-variance analysis. Investopedia. Retrieved February 9, 2023, from https://www.investopedia.com/terms/m/meanvariance-analysis.asp.

Ganti, A. (2023, January 27). Efficient frontier: What it is and how investors use it. Investopedia. Retrieved February 9, 2023, from https://www.investopedia.com/terms/e/efficientfrontier.asp.

Inc., S. P. G. (2022). DJSI Index family. S&P Global Homepage. Retrieved February 9, 2023, from https://www.spglobal.com/esg/performance/indices/djsi-index-family.

Team, T. I. (2022, November 3). Porter's 5 forces explained and how to use the model. Investopedia. Retrieved February 9, 2023, from https://www.investopedia.com/terms/p/porter.asp (10).