Proceedings of the 2024 2nd International Conference on Management Innovation and Economy Development (MIED 2024)

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The Use of Portfolio Theory in Investment

Authors
Danni Li1, *
1Business School, The University of Melbourne, Victoria, 3010, Australia
*Corresponding author. Email: danni3@student.unimelb.edu.au
Corresponding Author
Danni Li
Available Online 15 October 2024.
DOI
10.2991/978-94-6463-542-3_61How to use a DOI?
Keywords
Portfolio theory; investment decision-making; risk management
Abstract

This paper focuses on the application of portfolio theory to practical investment. The main research objects of this paper are the Industrial and Commercial Bank of China (601398) and China Yangtze Power Company (600900) and determine this portfolio’s feasibility and risk-return characteristics. This research evaluate this portfolio’s potential benefits and risks by analysing the historical data of the two companies and the stock market. The research adopts the portfolio theory, through the analysis of historical data, calculates the return rate, standard deviation and Sharpe ratio of ICBC and China Yangtze Power Company stocks to evaluate their performance in the past. The results show that the ICBC and China Yangtze Power Company stock portfolios have shown good returns over the past few years and have relatively low volatility. In general, the stock portfolio of ICBC and China Yangtze Power Company has specific investment potential in the Chinese market. Still, investors should carefully consider their personal risk preferences and investment objectives.

Copyright
© 2024 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 2024 2nd International Conference on Management Innovation and Economy Development (MIED 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
15 October 2024
ISBN
978-94-6463-542-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-542-3_61How to use a DOI?
Copyright
© 2024 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  - Danni Li
PY  - 2024
DA  - 2024/10/15
TI  - The Use of Portfolio Theory in Investment
BT  - Proceedings of the 2024 2nd International Conference on Management Innovation and Economy Development (MIED 2024)
PB  - Atlantis Press
SP  - 527
EP  - 534
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-542-3_61
DO  - 10.2991/978-94-6463-542-3_61
ID  - Li2024
ER  -