Modern Portfolio Theory and Empirical Analysis.

      Аннотация: Major people are interested but scared to invest in the stock market, as they are anxious about the risk involved in the market. So, they prefer to keep their money in banks and other risk-free sectors to play safe, but with the proper knowledge and calculations anyone who would like to invest can gain from the market and fulfill their desires. Now the question is where they should invest, how much to invest, when to invest, and how much risk they are bearing to earn a certain percentage of return; our study tries to answer these questions and assists an investor to take decisions. The primary objective of this research is how an investor could maximize his expected return and minimize the risk involved in his portfolio. Using the Modern Portfolio Theory various portfolios are evaluated in respect of expected return, risk and sharp ration with the target of finding out the optimal portfolio through efficient frontier, the one which has the least risk involved while maximizing the expected return, is the subject of study in this research work.

Ключевые слова: Modern Portfolio Theory, NSE, TSE, TWSE, HKG, KRX, efficient frontier, Market Capital Line, Expected Return, risk, Sharp ratio, Excel Solver