Abstract
This article tells us about selection of portfolio from National Stock Exchange. Investors are more concerned about their objective minimizing risk and maximizing returns. They considering their tradeoff b/w risk and return from the portfolio, a financial economist, Harry Markowitz, proposed the So-called optimal portfolio theory in 1952. The aim of this article is to provide a practical study of Markowitz model on the Indian Stock Market (NSE) from 1st June 2009 to 30th June 2019.The Markowitz model has been widely used by investors, its application on National Stock Exchange is limited. From the data input which are monthly adjusted closing & daily adjusted closing prices. As a result, investors can select the optimal portfolio that maximizes portfolio return with respect to risk. It is vividly manifest that the investor tends to be risk averters, the attitude towards risk and return tends to play a vital role for the selection of the portfolio. Thus, there is the need to comprehend the investor’s attitude towards different portfolio choices. Diversification always reduces the non-systematic risk, it is also given by Morgan Kelly in 1994 gives the benefits of diversification (all the eggs in one basket: portfolio diversification of US households). In other words, diversification allows an opportunity for investments to grow with minimum volatility, security behave differently in different market conditions.
Keywords
Markowitz, Beta, Regression, Variance, Covariance, Risk & Return
Recommended Citation
Puri, Yogesh and Yadav, Abhishek
(2019)
"Portfolio Selection in NSE Expected Return & Risk through Markowitz Portfolio Theory,"
Management Dynamics: Vol. 19:
No.
2, Article 4: 46-54
DOI: https://doi.org/10.57198/2583-4932.1022
Available at:
https://managementdynamics.researchcommons.org/journal/vol19/iss2/4
