Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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Using Risk and Return Guidance for Portfolio Building

Authors
Xinrui Guo1, *
1Accountancy, Jiangxi University of Finance and Economics, Nanchang, Jiangxi, 330013, China
*Corresponding author. Email: 2202100951@stu.jxufe.edu.cn
Corresponding Author
Xinrui Guo
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_34How to use a DOI?
Keywords
Markowitz Portfolio Model; Portfolio Theory; Stock
Abstract

After more than 30 years of rapid development, China’s capital market has provided a relatively broad investment and financing platform for all kinds of enterprises and investors. As stocks, the main trading varieties in the financial market, play an increasingly prominent role in investors’ asset allocation, for ordinary investors, how to reasonably construct a securities portfolio to obtain excess returns has become an important topic. Using the return data of individual stocks from January 1, 2024 to June 30, 2024, this paper analyzes many stocks in the A-share market, selects 10 stocks for portfolio according to five factors: industry diversity, market potential, financial stability, policy support, and social responsibility, and uses Markowitz’s mean-variance model to calculate the optimal weight ratio of each stock. Ultimately, based on the calculated Sharpe ratio, the portfolio’s returns can be assessed and used to provide retail investors with realistic investment recommendations to help them make more informed investment decisions in complex market environments.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_34How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xinrui Guo
PY  - 2025
DA  - 2025/02/24
TI  - Using Risk and Return Guidance for Portfolio Building
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 336
EP  - 344
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_34
DO  - 10.2991/978-94-6463-652-9_34
ID  - Guo2025
ER  -