ქართ | Eng

ISSN 2449-2396 (Print) | E ISSN 2449-2612 (Online)

JEL Classifications: G11, G17, C61


SOME SIMULATIONS ON THE PORTFOLIO RISK AND RETURN: A METHODOLOGICAL NOTE

Author: Fitim Deari, Izet Zeqiri, Sadri Aliji | Published: 2019-07-29 | Pages: 59-62

Full Text

For Citation: Deari F., Zeqiri I., Aliji S. (2019), Some Simulations On The Portfolio Risk And Return: A Methodological Note, Globalization And Business, N7, pp. 59-62.

Abstract

In this study we try to demonstrate mainly from the methodological and pedagogical perspective how investment weights and the correlation between securities are manifested on the portfolio risk and return. Empirical data are examined from 2010 to 2018 and for experimental purpose two companies are randomly selected. Totally five simulations are performed using Excel.

The fifth simulation presents the case of optimal proportions for an investor which efforts to minimize the portfolio risk.


Keywords

INVESTMENT, CORRELATION, WEIGHT, PORTFOLIO, STOCK


References

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