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AI Summary of Peer-Reviewed Research

This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

Publishing process signals: STANDARD — reflects the venue and review process. — venue and review process.

Optimal portfolio proportions were computed for Nifty 50 stocks

A close-up view of a computer monitor displaying a stock market candlestick chart with green and red candles, multiple colored trend lines, and a dark background, showing financial data visualization typical of trading or investment analysis software.
Research area:Financial economicsManagement Science and Operations ResearchFinancial Markets and Investment Strategies

What the study found

The study computed proportionate investment allocations for an optimal portfolio built from 50 Nifty 50 stocks. It identified stock returns along with systematic risk and unsystematic risk, and it suggested proportions that may be preferable for constructing an optimal portfolio.

Why the authors say this matters

The authors say this matters because investors seek to maximize returns while minimizing risk, and they suggest that the proposed proportions may be useful for individual investors, financial planners, and financial advisors. They also state that spreading the availability of funds is a relevant goal in portfolio construction.

What the researchers tested

The researchers examined 50 companies from the Nifty 50 using daily closing share prices from 1 February 2013 to 1 February 2023. They used Sharpe’s Single Index Model, a portfolio method that relies on a single index and is described in the abstract as requiring fewer inputs and being easier to calculate than the Markowitz model.

What worked and what didn't

The analyses produced investment proportions for an optimal portfolio and assessed returns together with systematic and unsystematic risk. The abstract does not report any comparison of performance against another portfolio method, nor does it state specific numerical outcomes in the summary provided.

What to keep in mind

The available summary does not describe detailed limitations, and it does not provide the exact stock-by-stock results or the computed weights. The study is limited to the 50 Nifty 50 stocks and the stated 10-year period.

Key points

  • The study computed an optimal portfolio for 50 Nifty 50 stocks.
  • It analyzed returns, systematic risk, and unsystematic risk.
  • Daily closing prices from 1 February 2013 to 1 February 2023 were used.
  • Sharpe’s Single Index Model was used instead of the Markowitz model.
  • The abstract says the resulting proportions may be preferable for investors and advisors.

Disclosure

Research title:
Optimal portfolio proportions were computed for Nifty 50 stocks
Authors:
R. Santhosh Raja, Dr. Aravinth
Publication date:
2026-02-25
DOI:
10.71086/iajafm/v13i1/iajafm1301
OpenAlex record:
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AI provenance: This post was generated by OpenAI. The original authors did not write or review this post.

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