The thesis focuses on the financial problem of optimising asset allocation, aiming to achieve the highest possible return for a given level of risk, or the minimum risk for a desired level of return.
Using modern portfolio theory, we explore an approach to managing client portfolios and analyse the practical application of the theory in a real-life financial advisory environment. Finally, we present alternative approaches to asset allocation. The thesis examines the core principles of modern portfolio theory, such as diversification and efficient portfolio construction, and compares them with other management models. We develop a mathematical model where we identify key parameters such as client beta and return and determine the achievable set of solutions, within which we find the optimal solution given the return and risk objectives. The aim of the thesis is to contribute to a better understanding of the optimisation processes of client portfolios and to the design of effective strategies for financial advice.
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