Stock portfolio selection based on risk appetite: Evidence from ChatGPT

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-05-19 DOI:10.1016/j.frl.2025.107517

Constantin J. Schneider, Yahya Yilmaz

引用次数: 0

Abstract

We analyze whether a large language model can generate investment portfolios with varying risk appetites and evaluate their performance against benchmarks. We prompt different ChatGPT models to create portfolios for different risk appetites of retail investors, focusing on U.S. and European equity markets. Our study reveals that higher-risk portfolios yield higher returns. GPT-4o outperforms in the U.S., while GPT-4 offers the highest returns in Europe. We further show that ChatGPT effectively adjusts portfolio risk and return metrics based on individual risk preferences. These findings suggest private investors can use ChatGPT to improve investment decisions, but careful model selection is vital.

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基于风险偏好的股票投资组合选择：来自ChatGPT的证据

我们分析了大型语言模型是否可以生成具有不同风险偏好的投资组合，并根据基准评估其表现。我们提示不同的ChatGPT模型为不同的风险偏好的散户投资者创建投资组合，重点关注美国和欧洲股票市场。我们的研究表明，高风险的投资组合产生更高的回报。gpt - 40在美国表现优异，而GPT-4在欧洲的回报率最高。我们进一步表明，ChatGPT基于个人风险偏好有效地调整投资组合风险和回报指标。这些发现表明，私人投资者可以使用ChatGPT来改善投资决策，但谨慎的模型选择至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance