Abstract
According to statistical report, cumulative wealth per capita has been increasing since 2000s, and in order to deal with the increasing free resources, portfolio management seems to play a significant role for both personal and corporate investment. This paper introduces the development of modern portfolio management, emphasises the importance of investment portfolio management and project portfolio management, and then discusses the methods of constructing investment portfolios and project portfolios. We use financial tools and some mathematical models to construct different portfolios according to the risk preference of investors and make some suggestions to them. The Monte Carlo methods we designed in this research will help investors improve the portfolio management optimisation. We suggest the investment strategy should be adjusted by preferences and the project with extreme grades should be reconsidered carefully.
| Original language | English |
|---|---|
| Pages (from-to) | 434-454 |
| Number of pages | 21 |
| Journal | International Journal of Business and Systems Research |
| Volume | 14 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2020 |
Keywords
- CML
- MPT
- Monte Carlo simulation
- capital market line
- financial risk.
- investor
- mathematical model of portfolio
- modern portfolio theory
- portfolio analysis
- portfolio management
- pricing model
- project management