Empirical Study On The Relation Between The Asset Quantity And The Portfolio Risk In Our Securities Market

The security portfolio investment theory has been highly valued by the portfolioinvestment practitioners and theorists since the 50's when it was generated. This theory iswidely applied to the risk assets investment in the developed capital market and has obtainedthe good effect. China's securities market is emerging capital markets. So it was veryconcerned about whether the portfolio theory is suitable for China's securities market andwhether it can play its due effect. This article thoroughly analyzed the relations between the stock quantity and the risk inthe Portfolio investment from both theory and real diagnosis, and systematically elaboratedmodern portfolio theory in the application of dispersing the Portfolio investment risk. Thereare three chapters in this article. In the chapter 1, it introduced some conceptions andfoundational knowledge about negotiable securities, the securities market as well as the riskof Portfolio investment, and it described the pacific risks in our current market. In the chapter2, it carried on the analysis thoroughly to the modern security portfolio investment theorystarting with the conception of the securities investment portfolio, and narrated theapplication premise of the Markowitz variance model in detail, then it described the incomeand the risk of the security market by using the Markowitz variance model, and indicated therelations between the risk and the income. Primarily, it dissertated the role of the portfolioinvestment in dispersing the Portfolio investment risk, and made the theory preparation forthe third chapter. The third chapter is the core part of the article. In this chapter, it carried onthe real diagnosis analysis to our securities market by using the Markowitz variance model. Itindicated clearly the present developing situation of our stock market by using the dataanalysis and the comparative analysis method, and demonstrated detailedly the role of theportfolio investment in dispersing the unsystematic risk. In the end of the chapter 3, byrelating with the actual status of our securities market, it proposed a few rational ideas toinvestors. Lastly, summing up the third chapter, it made the exciting forecast about thedevelopment of our securities market and the application of the modern portfolio theory.