This report will analyze the investment of EI and help them manage the portfolio. This report is divided into three parts. The first part will state the construction of the investment policy. In the process of investment, the investors should observe the principles of investment. Construction of core portfolio, diversification of investment and diversification of risk are the three main principles of investment. The construction of investment portfolio has three stages, the first stage is to identify the scope of funds; the second stage is calculate the return, expected profit, risk and other index of the funds; the third is optimize the income of all funds. In this part, investment strategy, investment constraints and investment objectives will be stated. The second part of the report will analyze the different stocks. First, the arithmetic mean, standard deviation, coefficient of variation and beta will be calculated in this part. And then the investment rate of every stock will be identified, in this process, the correlation coefficient and correlation matrix will be got by utilizing the Excel functions. By weighting the different stock and making an optimization, the investment portfolio will be confirmed finally. The third part of this report will evaluate the performance of every stock. This part mainly risk and return of stocks.
This model is available for investment group overall risk investment in one of the biggest risk to measure. Processing program problem, while for the portfolio problem usually, its overall risk does not necessarily according to this metric, the metric methods described in the special book. But for ordinary investors, in some less critical investment, still can use this model for scheme comparison and selection. The model has certain dependence to the investor attitudes about risk, so investors risk limit determines the final scheme in a certain extent. The application of the model is carried out in the financial market is more stable under the condition of average income, the ratio, the risk and transaction cost change is not big, by the analysis of the sensitivity, the decision model in this case is relatively stable, which is helpful to determine the investment scheme. Secondly, because under normal circumstances, the amount of investment for investors is greater than the investment threshold, this point and the model conditions are identical, therefore the usability enhancement model.