Investor’s Psychology In Portfolio Optimization: A Goal Programming Approach

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Ruchi Sharma , Dr. Ashutosh Goswami and Dr. Pankaj Kumar Gupta


This paper attempts to develop the portfolio optimization model using the Goal-Programming technique for investors with multiple goals and constraints. Methodology: In the proposed model, the stock return, systematic risk, covariance, unsystematic risk, and dividend have been used as financial indicators to analyze the stocks of Nifty 50. This study designed the portfolio optimization model using LINGO software from 1st April 2018 to 31st March 2019. Findings: The developed model help in-stock selection for growth and income portfolios in two different forms of market structure, i.e., optimistic and pessimistic. Further, the developed model also supplements fundamental and technical research, strengthening the stock selection criteria.

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