Open Journal of Social Sciences

Volume 11, Issue 3 (March 2023)

ISSN Print: 2327-5952   ISSN Online: 2327-5960

Google-based Impact Factor: 1.63  Citations  

Inflation and Portfolio Management

HTML  XML Download Download as PDF (Size: 339KB)  PP. 304-312  
DOI: 10.4236/jss.2023.113022    190 Downloads   938 Views  
Author(s)

ABSTRACT

Inflation effects not only the return but also the risk of the portfolio. To take the impact of inflation on portfolio into account, we propose an uncertain accurate mean-variance model with inflation. Considering the complexity of the financial and social environment, the return rate of risky assets and inflation rate are given by experts’ evaluations and treated as uncertain variables. For further discussion, we give the deterministic form of the model. Then we compare our model with a rough model that simply subtracts the inflation rate. By analyzing the difference between the results of our model and that simply subtracts the inflation rate, we show the necessity of our proposed model. After that, we provide and discuss numerical examples to illustrate the significance of the model, and conclude the paper.

Share and Cite:

Ma, D. (2023) Inflation and Portfolio Management. Open Journal of Social Sciences, 11, 304-312. doi: 10.4236/jss.2023.113022.

Cited by

No relevant information.

Copyright © 2025 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.