• Dr. Aashka Thakkar
• Siddhi Surve
• Udit Rawat

Portfolio construction is a widely used theory that describes how investors can build investment portfolios to maximize expected returns while minimizing risk. Implementing an asset allocation strategy, which involves balancing investment risk and return by adjusting the percentage of a portfolio allocated to each asset class, is part of portfolio construction practice. Asset allocation is determined by an investor's risk tolerance, investment goals, and time horizon. An attempt is made here to gain an understanding of the concept embedded in Sharpe's single index model and to empirically construct an optimal portfolio using this model. The study's goal was to create an optimal portfolio using Sharpe's single index model. The monthly closing prices of companies listed on the NSE and the NSE index (Nifty) for the period of the period from January 2010 to December 2016 was taken into account. Finally, it is recommended that, with the exception of three stocks (Maruti, Tata Steel, and HDFC), all of the stocks in the sample are undervalued, and investors should consider adding these stocks to their portfolio.

Sharpe’s Single Index Model, Return and Risk Analysis, Risk Characteristic Line, Portfolio Analysis, Optimal Portfolio Construction

"Optimum Portfolio Construction Using Sharp’s Index Model with Reference to Pharmaceutical Sector And Automobile Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 3, page no.b321-b327, March-2022, Available :http://www.jetir.org/papers/JETIR2203144.pdf

"Optimum Portfolio Construction Using Sharp’s Index Model with Reference to Pharmaceutical Sector And Automobile Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 3, page no. ppb321-b327, March-2022, Available at : http://www.jetir.org/papers/JETIR2203144.pdf