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 Marisetty

Nagendra Marisetty

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

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

Marisetty, 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 Marisetty (Contact Author)

Siva Sivani Institute of Management (SSIM) ( email )

Kompally
Secunderabad
Hyderabad
India

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

Tirupathi
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

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
306
Abstract Views
1,442
rank
112,237
PlumX Metrics