Mean-Scale Parameter Portfolio Model Analyse Attention To Invest Psychology

How to configure the treasure of individuals and institutions in the investment like stocks, bonds and derivatives is the central and essential problem around the finance. Portfolio theory is the solution of this problem. From mean-variance model that Harry M. Markowitz has put forward inl952 to this day, portfolio theory has been developing 50 years.Normal distribution hypothesis is very important to mean-variance model. However, many empirical researches have shown that distributions of returns of risky assets are skew and leptokurtic and are not normal. So studying portfolio theory on condition of non-normal distributions is very necessary and has both high theoretical value and high applied value. Currently, the hotspot of portfolio theory study almost base on Value at Risk or Conditional Value at Risk.1. This article study a portfolio model conditional on non-normal stable distributions base on complex science theory. The stable distribution can describe the characteristic of returns of risky assets. Put a portfolio model on condition of stable distributions: mean-scale parameter model.2. This article analyze the investors' psychology profoundly, describe the different invest policies from different investors based on the same model gather (mean-scale parameter model) and the varyingly model (settled return and settled risk). On one hand, it is convenient for computing model's solution. On the other hand, consider the self-engendered error on the model, the error transfer to the risk on the settled return portfolio model. Vice versa, the error will transfer to the return on the settled risk portfolio model.3. The portfolio frontier is just the theoretic frontier and preference solution. It has to carefully treat in practical application, because the error in process of dealing with data or computing model. Investor will endure tremendous losing. So, the portfolio frontier will expand indefinitely, this article use the frontier belt instead of it, called, 'portfolio frontier belt'. Thus, portfolio model gather can avoid the needless loss, it is very necessary and humanistic.