The effect of the skewness of stock distribution on optimal stock selection

The effect of the skewness of stock distribution on optimal stock selection

Optimal portfolio selection is one of the financial issues which has been considered in several ways in recent decades. Behavior of distribution of returns must be studied carefully for portfolio selection. In this research, it is hypothesized that stock returns have skewed Normal distribution and also it studies optimal portfolio under skewness. Considering skewness, stimulation results showed that the way used in this research is more efficient than Markowitz traditional model

Optimal portfolio selection is one of the financial issues which has been considered in several ways in recent decades. Behavior of distribution of returns must be studied carefully for portfolio selection. In this research, it is hypothesized that stock returns have skewed Normal distribution and also it studies optimal portfolio under skewness. Considering skewness, stimulation results showed that the way used in this research is more efficient than Markowitz traditional model.