Portfolio construction using the sharpe index model with reference to sugar and metal sector on India

The main aim of this research is to construct optimum portfolio through Sharpe index model. Th portfolio is constructed to help the investor to reduce the risk. In this study two sector sugar an metal are chosen for constructing the portfolio. Ten companies are selected from each of thes sectors and ranked according to single index model. The cut-off points are than calculated an securities are selected for construction of optimal portfolio. Proportion of investment in eac security in the portfolio is found out. This analysis will help the investor to invest in securit which would yield more return with minimum security.