Abstract :

Portfolio Optimization Is A Fundamental Aspect Of Investment Management That Aims To Maximize Returns While Minimizing Associated Risks. The Increasing Complexity Of Financial Markets And The Availability Of Diverse Investment Instruments Have Made Effective Portfolio Selection A Critical Challenge For Investors And Financial Institutions. Modern Portfolio Theory (MPT), Introduced By Harry Markowitz, Provides A Systematic Framework For Constructing Optimal Portfolios By Analyzing The Trade-off Between Expected Return And Risk Through Diversification. This Theory Emphasizes That A Well-diversified Portfolio Can Reduce Unsystematic Risk While Achieving Desirable Returns. The Proposed Framework Demonstrates How Quantitative Techniques Can Support Rational Investment Decision-making In Uncertain Market Conditions. By Applying Optimization Algorithms And Statistical Analysis, The Study Identifies Asset Allocations That Enhance Portfolio Performance While Maintaining Acceptable Risk Levels. The Results Highlight The Significance Of Diversification And Risk-return Balancing In Achieving Long-term Investment Success. This Research Contributes To The Field Of Financial Analytics By Providing A Practical And Data-driven Methodology For Portfolio Construction And Optimization, Which Can Be Utilized By Individual Investors, Portfolio Managers, And Financial Institutions For Effective Wealth Management And Investment Planning

Published:

02-3-2024

Issue:

Vol. 24 No. 3 (2024)

Page Nos:

197 - 204

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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