Portfolio Optimization Analysis in American Industry

Portfolio optimization, as a process of reorganizing investment and dispersing risks by considering the established target return risk tolerance, is widely used in financial field. This paper analyzes asset allocation six kinds assets. It uses three methods, namely, mean-variance analysis, CAPM, FF3F model, to optimize portfolio. At same time, proportion assets portfolio should be considered under conditions maximizing or minimizing at specific level. The results show that AEP Gold ETF have most considerable weight combination maximum Sharpe ratio minimum variance, respectively. In AT&T prominent while Google significant variance research may help potential investors interested power, communication, science technology, gold, automobile industries.