Optimal Assets Allocation For Investors

Authors

  • DARE JAYEOLA Department of Mathematical Sciences, Adekunle Ajasin University, PMB 001, Akungba Akoko, Ondo State, Nigeria.  Author

DOI:

https://doi.org/10.60787/jnamp.v68no1.413

Keywords:

Mean, Variance, Return, Risk, Portfolio, Diversification, Investment

Abstract

Asset allocation entails allotting investments among many assets. The target of investors is to minimize risk at a given returns or/and maximize returns at a given risk. The aim of this paper is to compare two asset allocations, Black Litterman model (BLM) and Mean Variance Model (MVM). The data used are groundnut oil, palm oil and palm kernel oil. The data is used to estimate values of risk and returns using both asset allocations to compute risk and return of the three assets. It is observed that BLM minimizes risk and maximizes return of its portfolio better than MVM.

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Author Biography

  • DARE JAYEOLA, Department of Mathematical Sciences, Adekunle Ajasin University, PMB 001, Akungba Akoko, Ondo State, Nigeria. 




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Published

2024-10-23

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Articles

How to Cite

Optimal Assets Allocation For Investors. (2024). The Journals of the Nigerian Association of Mathematical Physics, 68, 23-38. https://doi.org/10.60787/jnamp.v68no1.413

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