How Can an Individual Construct Optimal Portfolio with Reference to Sharpe’s Single Index Model

Abstract

Security analysis and selection of portfolios and managing them in the right manner helps in improving the investor’s awareness about the trends and changes that exist in the market. Creation of optional portfolio reducing the risk, without sacrificing the returns. The main objectives of the study are to get an insight into the idea in Sharpe’s single index model, to determine the return and risk of the optimal portfolio constructed by using Sharpe’s single index model. This study is aimed at creating awareness in the minds of investors regarding the utility of Sharpe’s Single Index Model in portfolio construction. This papers aims to finding out the how an individual construct optimal portfolio by using to Sharpe’s Single Index Model.