Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 75 , 17 April 2024
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An Integrative Review of Portfolio Management
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Abstract
This paper delves into the evolution of portfolio theories, tracing their development from the seminal work of Markowitz's traditional portfolio theory to the contemporary landscape of modern portfolio management. Emphasizing the relevance for real-world investors, the study scrutinizes the advantages, applications, and limitations of these investment theories. The exploration commences with a comprehensive analysis of return, risk, and various factors integral to portfolio theory. Leveraging qualitative analysis and real-world examples, the paper elucidates the mathematical model underpinning the theory, furnishing investors with a structured investment strategy. The focal points of the paper are the VaR (Value at Risk) model and the beta coefficient. Through an in-depth examination of their mathematical foundations and theoretical underpinnings, the research elucidates the symbiotic relationship between their economic significance and mathematical intricacies. Furthermore, the paper expounds on their collective contribution to the overarching portfolio theory, shedding light on their role as guiding principles for risk-averse investors. By weaving together theoretical frameworks and practical implications, this paper seeks to provide a nuanced understanding of portfolio theories, equipping investors with valuable insights for informed decision-making in the dynamic landscape of financial markets.
Keywords
Portfolio Management, Asset Allocation, Diversification
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-373-9
- ISBN (Online)
- 978-1-83558-374-6
- Published Date
- 17 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/75/20241602
- Copyright
- 17 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited