Portfolio Construction based on Equal Weights: Evidence from U.S. Pharmaceutical Sector

Within the context of renewed global emphasis on pharmaceutical sector as a result new crown epidemic, this article investigates how to develop portfolio within industry. This focus comes direct outbreak. The primary source data is investing, and time period covered from December 31, 2016, July 2022. study organized around four main components: research different market sectors, stock selection, design, evaluation. annualized return was 17.55%, which higher than S&P 500, 12.43%. portfolio's Jensen's Alpha, Treynor Ratio, Sharpe Ratio all suggest that has been effective in outperforming market. would seem indicate industry historically one least successful industries. findings have important repercussions for people who invest stocks companies.