Expected Return and Portfolio Rebalancing

Marcus Davidsson

Abstract


The purpose of this study is to discuss portfolio theory. More specifically how an investor can maximize a portfolio’s expected return while at the same time trying to minimize portfolio risk. This will be done by looking at both international and Kuwaiti stock market data. One important question that will be answered in this study is: How often does a portfolio needs to be rebalanced in order to minimize portfolio risk i.e. changes in expected return?

Full Text: PDF DOI: 10.5539/ijef.v3n3p15

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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