E3S Web Conf.
Volume 275, 20212021 International Conference on Economic Innovation and Low-carbon Development (EILCD 2021)
|Number of page(s)||5|
|Section||Environmental Protection and Governance Innovation Technology Research|
|Published online||21 June 2021|
Portfolio Construction for Pharmaceutical Industry
School of Statistics and Mathematics Zhongnan University of Economics and Law Wuhan, China
2 College of Liberal Arts & Sciences University of Illinois at Urbana-Champaign Urbana-Champaign, United States
3 School of information and Engineering Technology Nanjing University Jinling College Nanjing, China
In finance area, portfolio construction is one of the most vital questions since the primary work of modern finance and attract numerous studies. In this paper, we focused on this issue in pharmaceutical industry since the industry is crucial for human beings. We adopted several methods for portfolio construction, like Equal Weighted Model, Monte Carlo simulation, and maximize Sharpe ratio etc. Specifically, five assets are selected. Then based on the Monte Carlo method, we constructed two optimized portfolios in the framework of the efficient frontier, i.e., portfolios with minimum variance and maximum Sharpe ratio. By analyzing the two portfolios, we found that the NVS accounts for the largest proportions in the optimized portfolio. The results in this paper may shed lights for certain investors who invest in pharmaceutical industry.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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