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

Review for the Different Portfolio Methods Such as Mean-variance Analysis and Fama Factor Model

Authors
Tianrun Wang1, *
1Jining Confucius International School, 272113, Jining, Shandong, China
*Corresponding author. Email: guanghua.ren@gecacademy.cn
Corresponding Author
Tianrun Wang
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.067How to use a DOI?
Keywords
portfolio theory; mean-variance analysis; Markowitz’s portfolio theory; Fama-french model
Abstract

Portfolio Theory contains two important contents: the mean-variance analysis method and the portfolio effective boundary model. When people invest, they are essentially choosing between uncertain returns and risks. They maximize the expected return under a given level of expected risk or minimize the expected risk under a given level of expected return. Two important models will be used, Markowitz’s portfolio theory and the Fama-french model. We would explain the difference in the returns of different stocks. And found that these models have certain shortcomings, it analyzes a practical example that gives an annotation for the proposed model and method. The proposed investment scheme will bring the corporation the greatest profits in terms of theory.

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
10.2991/aebmr.k.220307.067How 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  - Tianrun Wang
PY  - 2022
DA  - 2022/03/26
TI  - Review for the Different Portfolio Methods Such as Mean-variance Analysis and Fama Factor Model
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 422
EP  - 426
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.067
DO  - 10.2991/aebmr.k.220307.067
ID  - Wang2022
ER  -