An Analytical Study on Construction of Optimal Portfolio Using Sharpe’s Single Index Model In Bse Sensex Index Stocks

Abstract

This study analyzes the construction of optimal portfolio using Sharpe’s Single index model in BSE SENSEX index stocks. For analysis, the researcher collected data from the official website of Bombay Stock Exchange. The period of study covers from 1^st April 2014 to 31^st March 2019. The collected data has been tested by different statistical tools. The findings of the study reveal that, among the optimum portfolio stocks, the maximum investment should be made in Titan with a proportion of 51.8417% and followed by Hindu with a proportion of 16.7871%, Martui with a proportion of 14.5253% and Indu with a proportion of 14.3647%. Moreover, the companies selected for the investment are steadily growing in the topical years.