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):

11 Pages Posted: 6 Oct 2019 Last revised: 22 Feb 2021

See all articles by Nagendra Marisetty

Nagendra Marisetty

Reva Business School, Reva University

Date Written: April 1, 2012

Abstract

The investor always prefers to have less risk and higher returns and to mitigate the risk and investors will do diversification. Diversification means combine of two or more assets, which gives the least risk and highest return. Combine of two or more assets is called portfolio. Risk and return are two fundamental and important factors for the construction of a portfolio. Every investor's motto in the construction of a portfolio is to minimize the risk and to maximize the return. An optimal portfolio is called which has the least risk highest return. Sharpe's Index Model (SIM) is the best and perfect model for the construction of an optimal portfolio. This study tries an attempt to build an optimal portfolio using Sharpe's Index Model (SIM) by using NSE NIFTY Shares.

Keywords: Diversification, NSE NIFTY, Optimal portfolio, Sharpe's Index Model, Risk and Return

JEL Classification: G11

Suggested Citation

Marisetty, Nagendra, 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 or http://dx.doi.org/10.2139/ssrn.3456697

Nagendra Marisetty (Contact Author)

Reva Business School, Reva University ( email )

Bangalore
India

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