Some Research on Value Range of Equal Weight Portfolio Risk

Abstract

Equal weight portfolio is an effective way of dispersing investment risk on the research of portfolio investment. The purpose of this paper is to present the more accurate value ranges and some recent results of the variance of return rate for equal weight portfolio investment, and to obtain some sufficient and necessary conditions for equal weight portfolio investment being optimal portfolio investment. These obtained results in theory have a significant effect on the theory research of modern portfolio investment. Finally, two numerical examples show the effectiveness of our obtained results.