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International Journal of Applied Research
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ISSN Print: 2394-7500, ISSN Online: 2394-5869, CODEN: IJARPF

IMPACT FACTOR (RJIF): 8.4

Vol. 9, Issue 2, Part D (2023)

Comparison of dual and primal method in portfolio selection

Comparison of dual and primal method in portfolio selection

Author(s)
Blessing E Chukwuemeka and GCE Mbah
Abstract
We studied portfolio selection process in Nigerian stock market. Portfolio selection practically deals with investments and there are varieties of instruments available to an investor at any given time. Financial statements are the major instrument used in the analysis of this work. Due to the fact that Nigerian economy is a developing economy which recently came out from recession, many companies are still striving to remain relevant in the economy and thus, much risk are equally on the business horizon. The burden of borrowed funds, risks, return and liquidity of the stock of various companies are determinant factors for an investor’s choice of acceptance or rejection of any stock. In developed economy, major determinant factors are return and risk on stocks. Considering the peculiarity of Nigeria like all other developing countries, we formed portfolio comprising of stocks of selected companies. It is from these stocks in the portfolio that we developed optimization equation to determine investment on stocks applying two simplex methods/approaches and compared the two methods. We found out that dual approach is better to use in selecting a portfolio than primal approach because it was shown that smaller amount of money when invested gets the same profit with that of primal that requires bigger amount.
Pages: 246-252  |  234 Views  53 Downloads


International Journal of Applied Research
How to cite this article:
Blessing E Chukwuemeka, GCE Mbah. Comparison of dual and primal method in portfolio selection. Int J Appl Res 2023;9(2):246-252.
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