The Stock Portfolio Selection at Chinese Stock Market

Abstract

This paper randomly selects 15 stocks from major industries in the Chinese stock market as a basket of investment portfolios. According to investor preference, this paper analyzes the return rate and risk level of this portfolio through Markowitz, Black, Tobin, and other models and compares them to find the optimal model. After finding the optimal model, we simulated the real investment situation and analyzed the real return on investment, but by comparing China's macroeconomic indicators, the return rate of our initial model was not ideal, so we incorporated the Sharpe ratio and improved the model , calculated a better portfolio.