Course project of Computational Finance
Course project of Computational Finance
Management of stock portfolio can be done by the portfolio managers using different approaches like quantitative approaches, dynamic approaches. Rather than going to the portfolio manager, investors can easily handle their portfolio by using that approaches without having any knowledge about them. So, considering these things, my aim to help the investors by building a system which will dynamically manage the portfolio of the investor with the changing value of stocks and also give some suggestions to make the portfolio efficient. For the system, the existing Black–Karasinski model is equipped with a heuristic strategy. The heuristic strategy will be used for calculating the asset return and by giving some suggestion about the stock holdings. The presented solution of this problem gives a good result for the return level 30%. The results demonstrated that a tradable portfolio can be maintained in the efficient frontier by the proposed system in realistic scenarios.