CREATING OPTIMAL PORTFOLIO SECURITIES ON MODERN FINANCIAL MARKETS

Abstract

Creating the optimal portfolio of securities on modern financial markets is leading in the modern theory and practice of investment in securities. The paper analyzes the extent and value of trading securities on the Belgrade Stock Exchange during the period from 31 October 2005 to 31 October 2010, as well as movement of the corresponding stock index during that period. Furthermore, the paper elaborates theoretical and empirical analysis of quantitative choice of the investor’s optimal portfolio of securities with security preference in case of the Republika Srpska capital markets. Based on the analysis of selection of the investor’s optimal portfolio of securities with security preference are Roy’s model, Kataoka’s and Telser's model.The bases for the analysis of selection of the investor’s optimal portfolio of securities with security preference are elaborated by means of the mathematical analysis of the Roy’s model, Kataoka’s model and Telser's model of capital market of the Republika Srpska. Interpretation of the results can serve as a basis for professional and scientific discussion on the investor’s optimal portfolio of securities with security preference.