Journal of Garmsar Science and Engineering

Review and Analyze methods for implementing the Markowitz model in optimizing investment portfolios.

Document Type : Original Article

Authors

Amir Jalilvandnejad 1
amir Ghanizadeh 2

1 University of Garmsar

2 Industrial Engineering Department, Engineering Faculty, University of Garmsar

Abstract
The Markowitz model, known as modern portfolio theory, operates based on the principles of diversification, risk, and return, aiming to reduce the overall risk of a portfolio while achieving higher returns. One of the main advantages of the Markowitz model is its ability to manage risk through the combination of different assets in the portfolio optimization problem. This model allows financial analysts and investors to create portfolios that not only meet their financial needs but also assist in optimizing financial performance using mathematical and statistical methods. This research examines and analyzes the Markowitz stock portfolio optimization model and reviews previous studies in this field. The aim of this research is to better understand the Markowitz model and its applications in optimizing investment portfolios, identifying and analyzing the strengths and weaknesses of this model, and comparing it with other models and approaches to stock portfolio optimization. The results of these examinations show that the Markowitz model, despite various limitations and challenges, remains one of the foundational and effective models for optimizing investment portfolios.

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