| Summary: | 碩士 === 中華大學 === 資訊管理學系碩士班 === 101 === The definition of an investment portfolio is a collection of financial assets. A good portfolio would consider which types of assets to invest and the ratio of each asset within the portfolio in order to increase profitability while lowering risk.
The purpose of an investment portfolio is so that investors can invest within their risk preference by choosing the right combination of assets out of the many choices available. Finding the right combination is a continuous process. In a portfolio, the number of financial assets available and the number of investment combinations available grow together proportionately, therefore the brute-force method cannot be applied for resolution. You must find the best resolution with the assistance of artificial intelligence.
Three common problems investors have regarding their investment portfolios are: the combination and allocation of assets creates risk that doesn’t fall within their comfort zone for risk; the portfolio contains an asset that the investor dislikes; and the portfolio contains so many assets that it’s difficult for the investor to manage.
This study had created a specific method to organize and categorize assets into different risk levels, then, based on an investor’s risk preference, chooses which assets to invest in a portfolio based on risk levels. The investors would be able to choose any combination of types and number of assets to invest in their portfolio. The method used to create the most desirable combination of assets with the highest sharpe ratio uses artificial intelligence based on genetic algorithm.
Lastly, a computer software was implement based on the method mentioned above. To prove the viability of the method in this study, real live asset statistics and investor information will be used during the process. Hopefully, it will be able to find future improvements in this study.
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