Research on the Allocation of Investment Funds -- Empirical Analysis of Five Listed Companies

Abstract

With the purpose of improving the optimal portfolio strategy of American listed companies, this paper studies the capital allocation of the investment subject under different models, and finally gives the portfolio countermeasures of the investment subject. This paper research the proportion of investment funds allocated by each company under three models: maximum Sharpe ratio model, minimum variance model, and equal weight model through returns of five companies from 2022-9-23-23 to 2023-2-15. It concluded that the allocation of MCD has the largest weight in maximum Sharpe ratio model and minimum variance model. Finally, the specific investment funds are calculated according to the calculated weight and the return rate from 2023-1-16 to 2023-2-15 and compared with the market data, discovering the conclusion that the equal weight model has the highest return, followed by the largest Sharp ratio model, the minimum variance model, and the market has the lowest return. The results verify the feasibility and effectiveness of the equal weight model in the portfolio and give the corresponding countermeasures and suggestions for investors to help them avoid risks and obtain the maximum returns in the financial market.