Stock Price Simulation with Geometric Brownian Motion and Efficient Frontier
Through the experiment, I was able to optimise a stock portfolio and draw an efficient frontier. In addition, I created random and equal-weighted portfolios, which I then compared with the efficient frontier. The findings were clear and consistent. Buying a random portfolio was found to significantl...
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| 格式: | Dataset |
| 语言: | English |
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University of Oxford
2024
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| 总结: | Through the experiment, I was able to optimise a stock portfolio and draw an efficient frontier. In addition, I created random and equal-weighted portfolios, which I then compared with the efficient frontier. The findings were clear and consistent. Buying a random portfolio was found to significantly reduce risk compared to buying stocks individually. Similarly, choosing an equal-weighted portfolio led to a selection remarkably close to the efficient frontier. These results instil confidence in the effectiveness of these strategies for stock portfolio optimisation. |
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