Construction of Optimal Portfolio using Sharpe Index Model

Presented paper in "International Conference on Challenges and opportunities in Mechanical Engineering, Industrial Engineering and Management Studies (ICCOMIM - 2012):

9 Pages Posted: 6 Oct 2019

See all articles by Nagendra M

Nagendra M

Sri Venkateswara University (SVU) - School of Business Management, Students ; Siva Sivani Institute of Management (SSIM)

P. V. Raveendra

M.S. Ramaiah Institute of Technology (MSRIT)

U. Brahmam

R. R. Institute of Advanced Studies

Date Written: April 1, 2012

Abstract

The investor always likes to have less risk and higher returns. To reduce the risk investors will do diversification. Diversification means combination of securities which provides the highest return and has lowest risk. Combination of securities is called portfolio. Risk and Return are two basic factors for construction of a portfolio. The principle point of every investor in construction of a portfolio is to maximize the return and to minimize the risk. The portfolio which has highest return and lowest risk is termed as Optimal Portfolio. Sharpe Index Model is adequate and conceptually sound in construction of optimal portfolio. This paper makes an attempt to construct optimal portfolio using Sharpe Optimization Model from NSE NIFTY Stocks.

Keywords: Sharpe, Portfolio, Risk, Return and NSE Nifty

JEL Classification: G11

Suggested Citation

M, Nagendra and Raveendra, P. V. and Brahmam, U., Construction of Optimal Portfolio using Sharpe Index Model (April 1, 2012). Presented paper in "International Conference on Challenges and opportunities in Mechanical Engineering, Industrial Engineering and Management Studies (ICCOMIM - 2012):. Available at SSRN: https://ssrn.com/abstract=3456697

Nagendra M (Contact Author)

Sri Venkateswara University (SVU) - School of Business Management, Students ( email )

Tirupathi
India

Siva Sivani Institute of Management (SSIM) ( email )

Kompally
Secunderabad
Hyderabad
India

P. V. Raveendra

M.S. Ramaiah Institute of Technology (MSRIT)

Bangalore, 560054
India

U. Brahmam

R. R. Institute of Advanced Studies

Raja Reddy Layout, Heseraghatta Main Road
Chikkabanavara
Bengaluru, Karnataka 560090
India

Register to save articles to
your library

Register

Paper statistics

Downloads
83
Abstract Views
430
rank
310,063
PlumX Metrics