Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 79 , 26 April 2024
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The Optimal Portfolio of AIA Group Limited’s Investment Insurance Products Based on Markowitz Model and Index Model
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Abstract
This paper uses the Markowitz and Index models to look for the optimal portfolio of AIA Group Limited’s Investment Insurance Products. While most of the previous articles concerning these two models only studied theoretically, the research object of this paper is more practical and instructive. First, this paper’s study method is to collect ten AIA investment insurance products’ revenue data from 2018 to 2023 from its website. Then, process the data, such as calculating the mean, variance, etc. Markowitz and Index Model are built on the basis of these data. The constraints are then introduced to find the optimal portfolio under different conditions. After comparison, it concludes that the Index Model analyzes the risk, while the Markowitz Model portfolio has the potential to yield higher returns than the Index Model portfolio when both are subject to the same level of risk. This research is instructive for investors finding the most suitable portfolio with the highest return and AIA developing new portfolio insurance products.
Keywords
Markowitz Model, Index Model, AIA Group Limited, Insurance, Investment
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)
- 978-1-83558-381-4
- ISBN (Online)
- 978-1-83558-382-1
- Published Date
- 26 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/79/20241785
- Copyright
- 26 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