Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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Assets Portfolio Analysis of the Firefighter Case

Authors
Bohua Miao1, *
1School of Computer Science, Wuhan University, Wuhan, Hubei, China
*Corresponding author. Email: 2019302100095@whu.edu.cn
Corresponding Author
Bohua Miao
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-052-7_32How to use a DOI?
Keywords
Fama-French three factor model; Pension; Portfolio management
Abstract

Portfolio optimization has a pretty significant position in the financial field. The purpose of this paper is to make the portfolio decision and the asset allocation by using four stocks and a firefighter’s pension that can be viewed as a long-term bond. First this paper aims to do the allocation analysis for the four fields. Then this paper will also discuss the portfolio decision under two different options with and without pension benefits. The data are collected and calculated by using the mean-variance analysis to get the performance of the portfolio. At last, by using the Fama-French three-factor model, the expected returns and Sharpe Ratio are calculated and then do the regression to determine which option is better. The results and the analysis show that, the Fama-French three factor can be more reasonable to do the calculation in the two options, and the ‘GOOGL’ has the largest proportion in the four stocks. Moreover, even though the portfolio expected return of the option without pension is higher, the Sharpe Ratio of the option with pension is higher, which means it is a better choice. These findings might be helpful to the investors related to the similar conditions.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
978-94-6463-052-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_32How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Bohua Miao
PY  - 2022
DA  - 2022/12/27
TI  - Assets Portfolio Analysis of the Firefighter Case
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 279
EP  - 288
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_32
DO  - 10.2991/978-94-6463-052-7_32
ID  - Miao2022
ER  -