Review for the Different Portfolio Methods Such as Mean-variance Analysis and Fama Factor Model

DOI

10.2991/aebmr.k.220307.067How to use a DOI?

Keywords

portfolio theory; mean-variance analysis; Markowitz’s portfolio theory; Fama-french model

Abstract

Portfolio Theory contains two important contents: the mean-variance analysis method and the portfolio effective boundary model. When people invest, they are essentially choosing between uncertain returns and risks. They maximize the expected return under a given level of expected risk or minimize the expected risk under a given level of expected return. Two important models will be used, Markowitz’s portfolio theory and the Fama-french model. We would explain the difference in the returns of different stocks. And found that these models have certain shortcomings, it analyzes a practical example that gives an annotation for the proposed model and method. The proposed investment scheme will bring the corporation the greatest profits in terms of theory.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Tianrun Wang
PY  - 2022
DA  - 2022/03/26
TI  - Review for the Different Portfolio Methods Such as Mean-variance Analysis and Fama Factor Model
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 422
EP  - 426
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.067
DO  - 10.2991/aebmr.k.220307.067
ID  - Wang2022
ER  -