Formation of adequate Investment Portfolio for Stochasticity of Profit Possibilities

Irfan Sayyed

doi:https://doi.org/10.14445/22315373/IJMTT-V28P508

International Journal of Mathematics Trends and Technology

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Volume 28 | Number 1 | Year 2015 | Article Id. IJMTT-V28P508 | DOI : https://doi.org/10.14445/22315373/IJMTT-V28P508

Formation of adequate Investment Portfolio for Stochasticity of Profit Possibilities

Irfan Sayyed

Abstract

The article focuses on the development problems of modern investment theories considering stochastic nature of investment profitableness. This is to be realised by offering investment portfolio adequate to the description of stochasticity of profit possibility, and motivating the scheme of its formation and use. Formation of adequate model and its practical use is based on computerised imitative technologies. Here are presented concrete examples of adequate model and the use of imitative technologies have been presented there. The work consists of 3 chapters: 1. “Formation of modern investment theory and development premises” focuses on the most reasonable results of this theory and actual problems that need to be solved. 2. “Opportunities and limitation of portfolio as the mean of investment management” indicates the importance of stochasticity of profit possibilities stressing on some investment issues incompletely solved by modern (classical) portfolio 3. “Formation and use of portfolio to evaluate adequate stochasticity of profit possibilities” presents the adequate concept and possibilities of practical adjustment. Portfolio description favourable for the stochasticity of profit possibilities is named after adequate model and geometrical picture of the portfolio geometrical model.

Keywords

Financial Mathematics, stochastic, linear algebra, quantitative models, investment portfolio

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Citation :

Irfan Sayyed, "Formation of adequate Investment Portfolio for Stochasticity of Profit Possibilities," International Journal of Mathematics Trends and Technology (IJMTT), vol. 28, no. 1, pp. 34-51, 2015. Crossref, https://doi.org/10.14445/22315373/IJMTT-V28P508