Investment Optimal Portfolio as an Answer for Human Needs and Current Trends

Abstract

This study examines the influence of digital transformation on human activity and its implications for investment decision-making during the COVID-19 pandemic. The research emphasizes the construction of an optimal investment portfolio that balances profitability and risk, with a focus on emerging trends in technology, education, and gaming. Utilizing the Efficient Frontier method, the study determines optimal portfolio weights, while the Sharpe Ratio is employed to evaluate and compare the risk-adjusted returns of these portfolios. The findings reveal that portfolios aligned with technological, educational, and gaming trends achieve a superior balance between profitability and risk. The Sharpe Ratio results further demonstrate that such portfolios yield enhanced risk-adjusted returns, highlighting the growing impact of digital trends on investment strategies. This research contributes to the academic discourse by elucidating the relationship between digital transformation and investment portfolio performance. It offers a novel perspective by linking human needs and the dynamics of modern digitalization with financial strategies, providing valuable insights for investors navigating the post-pandemic economic landscape.