Management and optimization model of stocks portfolio
Bingyong Tang · Journal of Natural Science of Heilongjiang University · 2004
If all capital was invested in a single share, the risk will be too high. Thus, investors usually choose a stock portfolio in order to reduce the risk. Some problems of the management of stock portfolio are discussed. The basic process of the management of stocks portfolio is described with five key components, i.e., investment policy, investment analysis, capital collocation, portfolio correction and outstanding achievement evaluation. A new index of risk measure is given, where both the potential losing harm and the gambling income of the risk in stock market are considered. Based on this index, an optimization model of stocks portfolio is put forward.