Research on the Investment Portfolio in Technology and Consumer Goods Industries

Bin Dai

doi:10.54097/9xxx4t13

Authors

Bin Dai

DOI:

https://doi.org/10.54097/9xxx4t13

Keywords:

Investment portfolio, technology sector, consumer goods sector, Markowitz Model, risk-return profile.

Abstract

This research investigates investment portfolios in the U.S. technology and consumer goods sectors, employing Modern Portfolio Theory (MPT) and the Markowitz Model to analyze and compare their risk-return profiles. The study highlights that the technology sector demonstrates a high-risk and high-return profile, making it attractive for risk-seeking investors aiming for significant gains amidst market volatility. In contrast, the consumer goods sector, with lower volatility, appeals to risk-averse investors who prefer stable and predictable returns. Key findings strongly emphasize the importance of aligning investment choices with individual investor preferences, illustrating how specific industry characteristics can influence investment strategies. The research suggests that investment success is considerably enhanced when portfolios are tailored to match individual risk tolerance and investment goals. This strategic approach provides a robust framework for guiding investors to make informed decisions that reflect their personal preferences and financial objectives, thereby helping them navigate market complexities and enhance portfolio performance.

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