WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 21, 2024
Informational Support for Investment Analysis
Authors: ,
Abstract: Investment analysis assesses in a quantified manner the efficiency of allocating resources to several alternatives, which can give a higher return in comparison with the lack of investment. The general investment problem is the allocation of resources between several investment alternatives. This research presents a particular investment problem for the allocation of financial resources to securities and the estimation of the most appropriate investment portfolio. The quantification of this problem is based on the application of the portfolio theory. The solution to the investment problem is supported by the support computer-based algorithm. Without such informational and computer support the investment problem cannot be properly been defined. The paper presents an application of the portfolio theory, but the added value is the demonstration of the practical solution to the portfolio problem with a well-known software environment. Practically the problem, which is solved is based on investment decisions with up-to-date investment instruments for the case of financial funds. The portfolio problem is solved in an Excel environment and the programming steps are presented in detail. This study illustrates the application of informational and computer support for solving a complex problem such as resource allocation by portfolio optimization.
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Keywords: informational support, investment analysis, portfolio theory, portfolio optimization, risk quantification, programming support, efficient frontier
Pages: 2042-2048
DOI: 10.37394/23207.2024.21.166