Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

The Optical Portfolio of the Markowitz Model and the Index Model

Under Ten Stocks from S&P 500

Authors
Zhide Zhang1, *
1Xian Tieyi High School, Xi’an, 710054, China
Corresponding Author
Zhide Zhang
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.248How to use a DOI?
Keywords
Markowitz Model; Single Index Model; Portfolio
Abstract

This paper compares the effectiveness of the Markowitz model with the Single Index model. Using ten stocks of the S&P 500 index from 2000 to 2020, we first calculate the portfolio of the two models and then find the optimal portfolio to help people know better about choosing a better model under different conditions. In this paper, the portfolio of the Markowitz Model is a little better than the portfolio of the Single Index Model, which means that under the same risk condition, the portfolio of the Markowitz Model can get more returns than the portfolio of the Single Index Model.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.248How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Zhide Zhang
PY  - 2022
DA  - 2022/03/26
TI  - The Optical Portfolio of the Markowitz Model and the Index Model
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1519
EP  - 1524
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.248
DO  - https://doi.org/10.2991/aebmr.k.220307.248
ID  - Zhang2022
ER  -