Formation of the Optimal Investment Portfolio as a Precondition for the Bank’s Financial Security
Keywords:
financial security, investment portfolio, risk, return on investment, variance, securities, covariance, yield.Abstract
This article analyses the definition of the bank’s financial security and investment activities. It describes a few types of models of bank’s risks management and the method CAPM, which is chosen for use. In support for the chosen CAPM method, we included the mathematical model that allows elaborating an optimal investment portfolio. The model stands at the basis of this method and a case study of one of Ukrainian banks.References
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