Comparison of Portfolio Selection Using Single Index Model and Markowitz Mean-Variance Optimization in Turkish Stock Market: A Meta-Analysis

This study compares Markowitz Portfolio Theory and Single Index Model, two fundamental theories that play an important role in financial portfolio management. While Markowitz Portfolio Theory focuses on the optimal trade-off between risk and return, Single Index Model constructs portfolios based on the relationship between individual asset returns and a market index. These two theories are used to determine financial asset allocation based on different perspectives and assumptions. In general, when the studies on the subject in the literature are examined, there is not enough evidence on which model is the most effective model in portfolio optimization. This study examines the performance comparison of the efficiency of these two theories by synthesizing existing research in the literature, including the Turkish stock market by using meta-analysis methods. The results of the meta-analysis are valuable in terms of revealing Markowitz mean-variance model and the Sharpe Single Index model. The results emphasize the importance for investors to consider market conditions, risk tolerance, and other factors when determining their portfolio management strategies. The study hopes that this comparison between financial theories and the results of the meta-analysis will help investors to make more informed and effective investment decisions.