Study on Application of Markowitz’s Portfolio Selection Theory in Overseas Petroleum Venture Investment Decision

Wei Na Jiang; Bin Shan Ju; Guang Hua Zhai; Ya Qiang Chen; Liang Wei

doi:10.4028/www.scientific.net/AMR.1051.1045

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HomeAdvanced Materials ResearchAdvanced Materials Research Vol. 1051Study on Application of Markowitz’s Portfolio...

Study on Application of Markowitz’s Portfolio Selection Theory in Overseas Petroleum Venture Investment Decision

Abstract:

Markowitz’s portfolio selection theory was applied in overseas petroleum venture capital investment, the mean of each project’s AT cash was used as the portfolio’s return, the fluctuate rate return of project was used to reflect portfolio’s risk, the combination of minimum risk portfolio optimization decision model was established. A variety of risk definition method were explored, efficient frontier under variety of risk-defined were developed, according to different risk preferences, the investment decision-makers can choose optimal portfolio to maximize investment, so as to reduce and avoid undue loss.

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Periodical:

Advanced Materials Research (Volume 1051)

Pages:

1045-1050

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.1051.1045

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Online since:

October 2014

Authors:

Wei Na Jiang*, Bin Shan Ju, Guang Hua Zhai, Ya Qiang Chen, Liang Wei

Keywords:

Efficientfrontier, Markowitz’s Portfolio Selection Theory, Optimal Portfolio, Risk Definition

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* - Corresponding Author

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