Allocation of Available Funds for some Portfolios with Mixed Investment Purpose Using Quadratic Programming Approach

Olawale Kolapo Steve Emiola¹ , Musibau Abayomi Omoloye²

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.3 , pp.61-67, Jun-2023

Online published on Jun 30, 2023

Copyright © Olawale Kolapo Steve Emiola, Musibau Abayomi Omoloye . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study investigates portfolio management of investible fund using quadratic programming. The data used is secondary in nature which is abstraction from annual report of earning per share of eight different organization namely: Dangote sugar, Dangote flour mills, Dangote Cement, Dangote salt, Zenith Bank, First bank, Fidelity bank, and Access bank was collected and a model was fixed. These data were analyzed using quadratic programming in conjunction with LINDO software. The result of the analyzed data revealed that 13% to be allocated to Zenith Bank, 9% to be allocated to Dangote cement, 13% to be allocated to Dangote Sugar, 13% to be allocated to Dangote flour, 13% to be allocated to Dangote salt, 13% to be allocated to Fidelity bank, 13% to be allocated to First bank, 13% to be allocated to Access bank. This will in turn gives an average increase of 90% return on capital invested. The research has answered the question of how much an investor should allocate to each investment to minimize risk and maximize return

Key-Words / Index Term :
Quadratic programming, portfolio management, data analysis, shares and hypothesis

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