Abstract
Due to the global recession caused by the effects of pandemics, the Russia-Ukraine war, and the Fed's interest rate hike, investors are wary of the U.S. stock market. In this paper, we will focus on how to find quality portfolios by using Harry Markowitz's variance portfolio model. Firstly, the data is retrieved to see the return distribution of each stock in this article four stocks are used which are Amazon (AMZN), Apple (AAPL), Microsoft (MSFT) and Tesla (TSLA), the expected return and standard deviation of the portfolio are modelled using the Monte Carlo model, and finally Scipy is used to solve for the minimum variance frontier and the most assets portfolio to obtain the optimal asset portfolio return case, the global minimum variance portfolio point, and finally bring it into the CML market for display, the chart can clearly observe the most assets portfolio and the distribution of the asset portfolio, which plays a key role in the later market practice of the investor.
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