Abstract
Building an investment portfolio is one of the most common ways for investors to hedge their risks. This paper examines the investment market in China's film and entertainment industry by selecting five leading A-share companies in the film and entertainment industry. Five representative stocks from these industries were selected for analysis in this paper: Guomai Culture & media Co., ltd., Beijing Funshine Culture Media Co., Ltd., Mango Excellent Media Co., Ltd, ZHEJIANG HUACE FILM & TV CO., LTD, Alpha Group. The closing price data of these five stocks in the past year were selected and 4000 different portfolios were simulated using the Monte Carlo simulation method. Then, the mean-variance model was used to select the portfolio with the maximum Sharpe ratio and the portfolio with the minimum variance. After the weights of the two groups of assets are obtained, this paper uses the actual income data for the last month to test the performance of the portfolios. The results show that ZHEJIANG HUACE FILM & TV CO. have the largest weights in both the maximum Sharpe ratio model and the minimum variance ratio model, but the evaluation of the weights shows that the large-cap results perform better than the above model.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
