Portfolio Shading up - A Portfolio composed by NVDA, NVO, KO AND C Using Efficient Frontier and Mean Variance Analysis

Abstract

This article illustrates that since last century investment becomes more and more popular as a way for people to save or spend money, but during the recovery of the pandemic, how we could make a suitable investment. This article, it demonstrates how to make an optimal portfolio with high return and low risk, with the introduction of the Variance and Mean model and efficient frontier, accompanied with the aid of Excel functions, and let it helps to get the solution best fitted in our expectations. The companies we chose for this portfolio are NVDA, KO, C and NVO, which are outstanding firms from four different industries. And another method of shading up the portfolio is also mentioned in this article, Potter's five force analysis and ESG analysis and rating scale, in a way that could increase the practical usefulness and validity in the reality of our portfolio. And these measures are also expected to be used in the future portfolio shading up.