IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-5p4308-4313.html

Efficient Method for Assets Allocation

Author

Listed:
  • Dare Jayeola

    (Department of Mathematical Sciences, Adekunle Ajasin University, PMB 001, Akungba Akoko, Ondo State, Nigeria)

  • Peter O. Olatunji

    (Department of Mathematical Sciences, Adekunle Ajasin University, PMB 001, Akungba Akoko, Ondo State, Nigeria)

  • Y. J. Aborisade

    (Department of Mathematical Sciences, Adekunle Ajasin University, PMB 001, Akungba Akoko, Ondo State, Nigeria)

Abstract

Asset allocation requires allotting savings among many assets. The goal of investors is to minimize risk at a given returns or/and maximize returns at a specified risk. The aim of this paper is to compare two asset allocations, Black Litterman model (BLM) and Mean Variance Model (MVM). The data used are groundnut oil, palm oil and palm kernel oil. The data is used to estimate values of risk and returns using both asset allocations to estimate risk and return of the three assets. It is observed that BLM minimizes risk and maximizes the return of its portfolio better than MVM.

Suggested Citation

  • Dare Jayeola & Peter O. Olatunji & Y. J. Aborisade, 2025. "Efficient Method for Assets Allocation," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 4308-4313, May.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:4308-4313
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-5/4308-4313.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/efficient-method-for-assets-allocation/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tamara Teplova & Mikova Evgeniia & Qaiser Munir & Nataliya Pivnitskaya, 2023. "Black-Litterman model with copula-based views in mean-CVaR portfolio optimization framework with weight constraints," Economic Change and Restructuring, Springer, vol. 56(1), pages 515-535, February.
    2. Helmut Lütkepohl & Fang Xu, 2012. "The role of the log transformation in forecasting economic variables," Empirical Economics, Springer, vol. 42(3), pages 619-638, June.
    3. Shea D. Chen & Andrew E. B. Lim, 2020. "A Generalized Black–Litterman Model," Operations Research, INFORMS, vol. 68(2), pages 381-410, March.
    4. Stephen G. Dimmock & Neng Wang & Jinqiang Yang, 2024. "The Endowment Model and Modern Portfolio Theory," Management Science, INFORMS, vol. 70(3), pages 1554-1579, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sebastián Flández & Rolando Rubilar-Torrealba & Karime Chahuán-Jiménez & Hanns de la Fuente-Mella & Claudio Elórtegui-Gómez, 2025. "Black–Litterman Portfolio Optimization with Dynamic CAPM via ABC-MCMC," Mathematics, MDPI, vol. 13(20), pages 1-17, October.
    2. Camelia Delcea & Ionuț Nica & Irina Georgescu & Nora Chiriță & Cristian Ciurea, 2024. "Integrating Fuzzy MCDM Methods and ARDL Approach for Circular Economy Strategy Analysis in Romania," Mathematics, MDPI, vol. 12(19), pages 1-35, September.
    3. Irina Georgescu & Mioara Băncescu, 2025. "Land Use and Water Stress as Determinants of Ecosystem Resilience: A Panel Data Analysis of Biodiversity Loss Drivers in European Countries," Land, MDPI, vol. 14(10), pages 1-23, September.
    4. Mejra Festić, 2015. "The Stability of the Credit Supply in the Globalized Banking Sector Environment: The Case of the EU New Member States-10," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(4), pages 386-398.
    5. Simona-Vasilica Oprea & Adela Bâra & Irina Alexandra Georgescu, 2025. "Assessing the Dynamics of Ecological Footprint in Relation to Economic and Energy Factors: A Comparative Analysis of Finland and Japan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 11162-11197, September.
    6. Ioannis Chatziantoniou & Stavros Degiannakis & Bruno Eeckels & George Filis, 2016. "Forecasting tourist arrivals using origin country macroeconomics," Applied Economics, Taylor & Francis Journals, vol. 48(27), pages 2571-2585, June.
    7. Weihao Han & David Newton & Emmanouil Platanakis & Haoran Wu & Libo Xiao, 2024. "The diversification benefits of cryptocurrency factor portfolios: Are they there?," Review of Quantitative Finance and Accounting, Springer, vol. 63(2), pages 469-518, August.
    8. Xiaojie Xu, 2020. "Corn Cash Price Forecasting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1297-1320, August.
    9. Bingxia Wang & Mohd Azmi Haron & Zailan Siri, 2024. "The Impact of Air Pollution Risk on the Sustainability of Crop Insurance Losses," Sustainability, MDPI, vol. 16(19), pages 1-23, October.
    10. Mohammad Tarique & Zia Malik, 2025. "Asymmetric Impact of Digital Finance on Poverty and Income Inequality Using NARDL Approach: Evidence from Indonesia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(5), pages 16211-16236, November.
    11. Maria Cristina Arcuri & Gino Gandolfi & Fabrizio Laurini, 2023. "Robust portfolio optimization for banking foundations: a CVaR approach for asset allocation with mandatory constraints," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 31(2), pages 557-581, June.
    12. Zhengyang Fan & Ran Ji & Miguel A. Lejeune, 2024. "Distributionally Robust Portfolio Optimization under Marginal and Copula Ambiguity," Journal of Optimization Theory and Applications, Springer, vol. 203(3), pages 2870-2907, December.
    13. Xu Xiaojie, 2018. "Using Local Information to Improve Short-Run Corn Price Forecasts," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(1), pages 1-15, January.
    14. Avishek Khanal & Mohammad Mafizur Rahman & Rasheda Khanam & Eswaran Velayutham, 2021. "Are Tourism and Energy Consumption Linked? Evidence from Australia," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    15. Mayr, Johannes & Ulbricht, Dirk, 2015. "Log versus level in VAR forecasting: 42 million empirical answers—Expect the unexpected," Economics Letters, Elsevier, vol. 126(C), pages 40-42.
    16. Proietti, Tommaso & Lütkepohl, Helmut, 2013. "Does the Box–Cox transformation help in forecasting macroeconomic time series?," International Journal of Forecasting, Elsevier, vol. 29(1), pages 88-99.
    17. Danilson Varela & Filipa Monteiro & Patrícia Vidigal & Luís Silva & Maria M. Romeiras, 2020. "Mechanisms Implemented for the Sustainable Development of Agriculture: An Overview of Cabo Verde Performance," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    18. Taylor, Nick, 2017. "Realised variance forecasting under Box-Cox transformations," International Journal of Forecasting, Elsevier, vol. 33(4), pages 770-785.
    19. Anagh Chattopadhyay & Soudeep Deb, 2024. "A spatio-temporal model for binary data and its application in analyzing the direction of COVID-19 spread," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 108(4), pages 823-851, December.
    20. Helmut Lütkepohl & Fang Xu, 2012. "The role of the log transformation in forecasting economic variables," Empirical Economics, Springer, vol. 42(3), pages 619-638, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:4308-4313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.