The Construction of Investment Portfolios under the Minimization of Variance—Taking the Hong Kong Insurance Market as an Example
Year: 2024
Type: article
Abstract: In the context of a decline in the Hang Sheng Index, this paper intended to study the different effect between using Markowitz Model and Index Model to invest insurance industry’s stock in Hongkong, especially for those who are risk-averse. A recent ten years of adj close for 9 typical insurance stocks from Hongkong as well as the Heng sheng index has been chosen as the target data. The result illustrates that there is no significant difference between these two models. This study intends to give some reference for those who focus on Hong Kong insurance industry’s investment and hate taking risk. This study find that the constraint’s minimal variance is the smallest at 16.832(The index model of constraint 2) and the constraint’s highest sharp ratio is around 0.26(The index model of constraint 4). The findings of this paper provide the investors empirical evidence on how to construct optimal investment portfolio in Hong Kong insurance market.
Author: Yunjia Wang
Institution: Shanghai Lixin University of Accounting and Finance
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4403846834