Multi-objective Portfolio Theory In The Analysis Of Family Financial Management Application

Family financial management is developed with personal finance, and personal finance has a history of 100 years in the west society, but the domestic personal financial has only ten years of history, family planning and household wealth management have began in recent years. With the improvement of living standards of domestic family, the Chinese family financial management becomes more important in life than before, which is because of many aspects. A standard family financial planning should be decided according to the different characteristics of each family, it is a financial planning of scientific, systematic, operational and various aspects coordinated, there are many descriptive research at home and abroad. But for the key, there are few good articles in how to choose the family portfolio of mathematical study. In the securities market, the currency markets, the gold market, real estate market, capital market, people have variety selections in family financial management today, this theory is of important theoretical and practical significance.With the development of economy and the improvement of people's living standard, the wealth of the family increases, the demand for family financial management is becoming more and more exuberant. With increasingly complex financial markets as a background, in the introduction of the stock portfolio investment in the capital market, than there is a introduction of family portfolio investment in the multiple markets, in order to give some suggestions in the portfolio investment direction of family financial management. The paper introduces the research situation at home and abroad, it also gives a introduction of the theory of multi-objective portfolio based on the traditional theory of H. Markowitz, and analysis of the capital market, money market, real estate market of the typical investment tools, then it introduces the assumptions of the multi-objective portfolio selection model, the target selection and the different calculation method; the multi-objective portfolio selection model is first applied in the four kinds of stock in the capital market, as a comparison we obtain the result of H. Markowitz model by calculating, then the article gives the analysis of the two different methods in the variable selection, the target selection and the final effect; family financial management is not only confined to the capital market, the product can involve currency market, the gold market, the real estate market and other investment market, etc. Based on the assumptions, the article use multi-objective linear programming method examine the rationality of a interval typical family financial portfolio selection, use AHP analyze a family's best investment direction; then the article analyzes the affect of the life cycle, the family fortune, the investment environment on the application of the multi-objective portfolio selection model; in the final the article gives some proposals.