IDEAS home Printed from https://ideas.repec.org/a/rsg/littra/2014-001.html

Optimal Portfolio of Chosen Stocks of the Prague Stock Exchange

Author

Listed:
  • Radim Gottwald

Abstract

The aim of the article is to assemble an optimal portfolio of chosen stocks of the Prague Stock Exchange. The Markowitz portfolio model is used. At first, Pearson correlation coefficients and covariance are calculated for the stocks ČEZ, KOMERČNà BANKA, TELEFÓNICA, UNIPETROL, NWR and PX Index in order to find the dependence measure from 2003-2012. These values are presented in a correlation matrix and covariance matrix. Yield, risk and yield to risk ratios are calculated for stocks and PX Index. The dependence between yield and risk of stocks as well as yield and risk of portfolios are found. Stocks have different weights in a portfolio. A set of possible portfolios and a set of efficient portfolios are assembled for various combinations of five-component stock portfolios. Based on that, an optimal portfolio is assembled. This article brings a method that can be used by investors and other subjects of the financial market while deciding to what stocks to invest in.

Suggested Citation

  • Radim Gottwald, 2014. "Optimal Portfolio of Chosen Stocks of the Prague Stock Exchange," Littera Scripta, VSTE, vol. 7(1), May.
    • Handle: RePEc:rsg:littra:2014-001
    DOI: 10.36708/LS.2014.I01.001
    as

    Download full text from publisher

    File URL: https://littera-scripta.com/articles/optimal-portfolio-of-chosen-stocks-of-the-prague-stock-exchange-a64726ab
    Download Restriction: no
    File URL: https://libkey.io/10.36708/LS.2014.I01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:rsg:littra:2014-001. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Robin Kunju Mol Raj (email available below). General contact details of provider: https://littera-scripta.com/ .

    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.