A Study on Assessment of Markowitz Portfolio Model in Predicting Return on Investment

Authors

  • Meenakshi Sharma, Souren Sarkar, Abhishek Chakraborty, Sheetal Sharma, Namrata Gain

Keywords:

Casual Investors, Portfolio Theories, Investment Decision Making, efficient portfolio, fund diversification

Abstract

Financial theories, such as Markowitz portfolio theory attempt to pin down investment decision making in terms of risk and return. However, a number of studies as well as theories from investment behavior suggest that risk and return are just two facets of investment decision and should be seen as a part of a bigger framework. This study examines the portfolio of casual investors through the lens of Markowitz theory and identify whether they are capable of making efficient portfolio or not. The results of this study reveal that there is huge gap between risk and return of casual investors. These findings will be useful for financial intermediaries who can use these findings to make appropriate financial strategy for targeting casual investors.

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Published

2022-02-16