Building an optimal portfolio using Sharpe's single index model

This research paper aims to build an optimal portfolio using Sharpe’s Index Model. The study has been done on Bombay Stock Exchange Sensex 30 constituent companies. monthly stock prices between August 2017 2021 have considered for this study. Various measures such as mean return, Beta coefficient, Excess Standard deviation, Variance, Cut Off Rate, Proportion of Investment and Portfolio Return are computed. final results showed that, twenty-six stocks were bullish during the period delivered positive returns four negative out thirty in BSE Sensex. Therefore, is continued those 26 which generated determine cut off rate. Further, application model highlighted be used constructing portfolio. largely fluctuated February 2020 March due pandemic induced lockdowns shut downs followed by a sharp rise facilitated monetary easing Indian Government Reserve Bank India maintain liquidity.