Author(s)

Rongcheng Le

Corresponding Author

Rongcheng Le

ABSTRACT

The global stock market has undergone a historic downturn and volatility because of COVID-19's influence. This paper creates a portfolio using 10-year stock price data from the S&P 500 and 10 stocks. The varied performance of the portfolio before and after the pandemic could be examined under four different constraints using the Markowitz model and Index model to compute the portfolio's return and risk. Overall, we model a satisfactory weight distribution, even though the portfolio following the pandemic usually has a lower return-risk ratio. The weights of technology equities in a given portfolio fluctuate, whereas aviation stocks are always undervalued before and after a pandemic. This study seeks to anticipate an optimal portfolio or portfolio with the lowest risk in advance for investors in the future, assisting in the avoidance of potential unknown risk.

KEYWORDS

Markowitz Model, Index Model, portfolio, COVID-19