CAPM Model and Optimal Risky Portfolio for American Stock Market

CAPM Model and Optimal Risky Portfolio for American Stock Market | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article CAPM Model and Optimal Risky Portfolio for American Stock Market Runsheng Rong This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3847279/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The stock market has high risks. The purpose of this project is to calculate the beta coefficients and build the optimal risky portfolio consisting of eight different stocks each representing different significant industries (which includes information technology, electric cars etc.) to diversify risk and gain a high return. Putting more stocks into the portfolio can help analysts carry out comprehensive analysis on different situations, periods, and types of investment portfolio, so as to disperse risks and obtain high returns, also, ensure the diversity of portfolio and a lower risk. The empirical results in this paper shows that by allocating their money appropriately in different stocks, investors can gain returns multiple times higher than putting all of them in merely one single stock, which proves the validity of this paper. Finance Financial Mathematics stock market 7-day moving average daily adjusted closing price CAPM optimal risky portfolio Sharpe ratio Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-3847279","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":266029678,"identity":"7d45c4d4-d031-413d-8389-decc8687cbe8","order_by":0,"name":"Runsheng Rong","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA2ElEQVRIiWNgGAWjYBACfobDhx//4WHjYWxvPkCcFsnGY2kGPDJ8csw9xxKI02Jw+IyBBI+NnDH7DB8DIl127IyBgUSOWWLvDJ6PN94w2MnpNhDQwdhzrOCBwZm0xJmzezdbzmFINjY7QEALs8ThDQaJPccSN845u02ah+FA4jZCWtjkHxhIHPz3P3H/jZxnxGnhYThiINnAw2bMOCOHjTgtEgzH0owZeNjkgJ4ytpxjQIRf7A8Ao5IBEpUPb7ypsJMjqAXVSh5iowZJC6k6RsEoGAWjYEQAAKSLRp+gbeifAAAAAElFTkSuQmCC","orcid":"https://orcid.org/0009-0000-7953-2752","institution":"Xi'an Jiaotong-Liverpool University","correspondingAuthor":true,"prefix":"","firstName":"Runsheng","middleName":"","lastName":"Rong","suffix":""}],"badges":[],"createdAt":"2024-01-09 05:09:09","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-3847279/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-3847279/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":49407782,"identity":"185f4db1-7928-4ef9-a5ec-4141a788dbc9","added_by":"auto","created_at":"2024-01-10 09:15:30","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":516939,"visible":true,"origin":"","legend":"","description":"","filename":"CAPMModelandOptimalRiskyPortfolioforAmericanStockMarket.pdf","url":"https://assets-eu.researchsquare.com/files/rs-3847279/v1_covered_cb1617b1-8830-41ef-b0c9-ab1d58443e05.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003eCAPM Model and Optimal Risky Portfolio for American Stock Market\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"stock market, 7-day moving average daily adjusted closing price, CAPM, optimal risky portfolio, Sharpe ratio","lastPublishedDoi":"10.21203/rs.3.rs-3847279/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-3847279/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe stock market has high risks. 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