Abstract
This study shows how investors can maximize returns by preparing and monitoring their own stock portfolio by using an integer programming model with an algorithm that can be computed in spreadsheet and linear programming software. Further, the study emphasizes the importance of diversifying stockholdings to reap optimal returns and minimum volatility/risk. It also suggests employing behavioral portfolio theory where goals/aspirations of investors are combined with their reward-to-volatility profile.
Recommended Citation
Sarreal, Emilina R.
(2009)
"Stock Diversification and Integer Programming,"
DLSU Business & Economics Review: Vol. 18:
No.
2, Article 7.
DOI: https://doi.org/10.59588/2243-786X.1357
Available at:
https://animorepository.dlsu.edu.ph/ber/vol18/iss2/7
Included in
Accounting Commons, Economics Commons, Finance and Financial Management Commons, Marketing Commons
