Research on Investment Portfolio Strategy Under the Background of the COVID-19

Abstract

Under the strike of the sudden and severe COVID-19 pandemic, the market faced significant tremors, which invalidated previous investment options and diversified portfolios. This research explores investment portfolio strategy amid the COVID-19 pandemic, focusing on a diversified investment approach incorporating Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM). The portfolio includes high-performing stocks such as Amazon, Tesla, Procter & Gamble (PG), BioNTech (BNTX), and NVIDIA, which have significant market resilience and growth potential during the pandemic. Using MPT, the author optimized the portfolio for maximum Sharpe rate, while CAPM was employed to determine the optimal investment weights based on each stock’s expected risk-return profile. The study analyzes historical price data, market volatility, and the economic impact of COVID-19 to evaluate the performance and risk of the diversified portfolio. The findings suggest that strategic asset allocation informed by these theoretical frameworks can enhance portfolio robustness against market uncertainties caused by global health crises.