The Portfolio Optimization in Different Areas

Abstract

Portfolio optimization is a popular method widely used in the financial industry. This paper analyzes the asset allocation analysis for pension and diversified assets in new energy vehicles, computer software, chip, information industry. There are four assets from different sectors. In this paper, Mean-variance and CAPM model were used for portfolio optimization. Meanwhile, the performance of the portfolio is analyzed in this paper by using weights. In addition we compare the final sharp ratio of accepting the Lump Sum or Defined Benefit. The result shows that in the CAPM model, when accepting Lump Sum, "AAPL" and "NVDA" have the maximum and the minimum weight. When selecting Defined Benefit, "ADBE" and "NVDA" have the maximum and minimum weights in the maximum ratio, respectively. This study may be useful for retirees to use in choosing whether to receive Lump Sum or Defined Benefit.