The Optical Portfolio of the Markowitz Model and the Index Model
Under Ten Stocks from S&P 500
- https://doi.org/10.2991/aebmr.k.220307.248How to use a DOI?
- Markowitz Model; Single Index Model; Portfolio
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.
- © 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 -