Portfolio selection problem: Issues, challenges and future prospectus

Abstract

Portfolio management is the process of deploying funds in returns earning avenues. Portfolio selection is a process of construction of portfolios by selecting assets from the stock market with the aim of highest returns on least risk simultaneously. This paper presents the insight on portfolio selection history issues and challenges which are faced by investors while making investment decisions. It also discusses prospects that will be available in the future to investors.

Keywords

• portfolio selection problem
• expected return
• risk
• modern portfolio theory