Selecting an Optimal Investment Portfolio for Family Investors:Evidence from China

摘要

The paper mainly relies on the mean-variance model to analyze problems concerning the optimal investment portfolio for common Chinese family investors. We assume that the family investors in China can invest in stock, real estate and bank deposits. The optimal problem can be properly solved by carrying out an empirical study of Chinese financial market from the year 2004 to 2009. Results show that the family investors in China should diversify their family assets by investing a larger proportion of wealth on real estate while less on stocks.