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Exploring the Application of Quadratic Programming Within the Markowitz Economic Model: An Empirical Analysis of the Chinese Real Estate Market
- 1 Hainan University, Zip code: 570228, 58 People's Avenue, Haikou City, Hainan Province, China
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Abstract
This paper introduces an innovative approach by incorporating quadratic programming (QP) into the Markowitz portfolio optimization framework. The central objective of our study is to explore the integration of QP as a solution scheme for portfolio optimization problems with constraints, particularly in the context of the dynamic and complex Chinese real estate market.By meticulously formulating rigorous mathematical models and implementing systematic procedures, we empirically assess the effectiveness and applicability of QP within the Markowitz portfolio model. Our research contributes to a deeper understanding of portfolio optimization by shedding light on how QP can aid investors in optimizing their portfolios in the intricacies of the Chinese real estate market. We provide valuable advice for investors, enabling them to make more informed and efficient investment decisions, thereby reducing risk and maximizing returns. This study serves as a valuable reference for academics, practitioners, and policymakers seeking to navigate the challenging landscape of the Chinese real estate market.
Keywords
Markowitz mean-variance model, quadratic programming, Chinese real estate market, Portfolio analysis
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Cite this article
Xu,J. (2024). Exploring the Application of Quadratic Programming Within the Markowitz Economic Model: An Empirical Analysis of the Chinese Real Estate Market. Advances in Economics, Management and Political Sciences,70,31-37.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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