Authors:

Shubham Sah, Amit Kundu, Anil Kumar Goyal

Abstract:

In this paper fifteen stocks of different sectors from the Bombay Stock Exchange (BSE) have been considered for the study. To maximize the expected return and minimize the risk, optimum portfolio has been drawn using the efficient frontier, in which there is no other portfolio that gives better expected return with the same or minimum level of risk. It is found in our analysis that optimum portfolio with maximum sharp ratio is portfolio- 7. It gives the expected return 31.21 with the risk 18.91. The weights given in the portfolio- 7 to stocks Apollo Hospital, Tata Consultancy Services Limited, Reliance Industries Limited, Titan Company Ltd., & Asian Paints Ltd are 11%, 15%, 18%, 21%, & 35% respectively. Asian Paints Ltd are performing very well, as the weight is highest in the optimum portfolio.

Keywords:

Efficient Frontier, Market Capital Line, Expected Return, Risk, Sharp Ratio, Excel Solver.

Vol & Issue:

VOL.14, ISSUE No.Special Issue 1, january 2022