Limitations on the stocks portfolio optimization on the Banja Luka Stock Exchange
Journal Title: Acta Economica - Year 2016, Vol 14, Issue 25
Abstract
The term „portfolio analysis”, which was introduced in the economic theory by Harry Markowitz, is not a new term in scientific literature. However, in the papers of local and foreign authors, analysis and criticism are mainly based on the examples of developed capital markets. There are very few cases of application of the portfolio analysis on domestic capital market. The focus of this paper is on implementation of diversification of the shares on the Banja Luka Stock Exchange. Using Markowitz’s portfolio selection, we will prove that diversification, including all limitations, is possible and applicable onto the domestic capital market.
Authors and Affiliations
Горан Радивојац, Милош Грујић
Keywords
Related Articles
- EP ID EP43833
- DOI https://doi.org/10.7251/ACE1625035R
- Views 251
- Downloads 0
THE INFLUENCE OF NATIONAL ON THE CORPORATIVE CULTURE, USING THE CASE STUDY OF SOUTH KOREA
The influence of national on the corporative culture has been presented in this paper. First of all organizational culture is defined, and then dimensions of national cultures are stated. Special attention in this paper...
STATE PROTECTIONISM AS A BARRIER TO COUNTRIES’ CRISIS RECOVERY
Decline in world trade which was caused by the global crisis could cause further drop of production and employment. Because of the positive multiplicative effects of world trade on production growth, recovery of world ec...
FINANCIAL CRISES
It seems that all generations are sinful. This generation has also failed and allowed for the crisis to happen of debtors, banking, currency exchange, stock exchange and economy. It is obvious that we have become the vic...
THE FOREIGN DIRECT INVESTMENT IN TRANSITION COUNTRIES: THE EXAMPLE OF REPUBLIC OF SRPSKA
Foreign direct investments (FDI) are developmental chance of companies from transition countries and the best way to increase production, employment and living standard for the long term. This form of international movem...
The Correlation between the Risk of Default and Solvency of Member States of the Monetary Union
The debt crisis in the European Monetary Union, emphasized the importance of keeping a responsible fiscal policy, especially in the context of issues of public debt sustainability and solvency of the member countries. Co...