Portfolios under Different Methods and Scenarios: A Case of Fiji’s South Pacific Stock Exchange

In this study, we analyze portfolio performance under different methods and scenarios for the small island economy of Fiji. addition to documenting historical smallness stock market, study looks at possibility opting an equally weighted (naïve) against market minimum variance portfolios. To end, extract monthly price data 17/19 listed companies from August 2019 July 2022 invoke approaches develop portfolios scenarios. We consider mean-variance, variance, semi-variance, utility maximization, turbulence portfolios, based on beta-adjusted (CAPM-based) returns. The presented in should provide some insights asset allocation Fiji’s market. Interestingly, unlike average returns, returns indicate that can yield relatively higher expected than although, with a standard deviation lower Sharpe ratio optimized results. semi-variance analysis (where account downside risk only), yields superior albeit Sortino ratio. Given is currently small, number companies, potential less sophisticated investors analysts considering may simply opt 1/N as diversification strategy while realizing decent are alternative considerations nuanced investors. Additionally, turbulence-adjusted minimum-turbulence constructed capture periods unusualness calmness methodologies results be adjusted applied other markets hence influence investment decisions creating diversified