Portfolio Selection of Health Care and Oil and Gas Sector by the Means of Genetic Algorithms Based on Population and Survival of the Fittest

Year 2017, Volume: 5 Issue: 1, 29 - 32, 31.03.2017

David Oyewola , D. Hakimi Y. Yahaya G. Bolarin M.d. Shehu

Abstract

Portfolio selection is one of the most important and vital decisions that a real or legal person, who invests in stock market should make. The main purpose of this paper is to determine the optimal portfolio with regard to stock returns of companies, which are active in Health Care and Oil and Gas Sector of Nigerian Stock Exchange. For achieving this purpose, annual statistics of companies’ stocks spanning from 2010 – 2014 have been used. For analyzing statistics, information of companies stocks, the Genetic Algorithms and Particle Swarm Optimization (GAPSO) and Knapsack Problem have been used with the aim of increasing the total return, in order to form a financial portfolio.

Keywords

Genetic Algorithms, Survival of the fittest, Portfolio selection, Return, Knapsack Problem

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