Document Type
Capstone Project
Abstract
As of 2025, there is an estimated total of “US$145.4 trillion” (Olatunji-Albert and Meres) under management by institutional investors according to PricewaterhouseCoopers. This capital is primarily composed of high-net-worth individuals (individuals with liquid assets of at least $1 million (Hayes) in addition to universities' endowments and pensions. With the main intention of investing to be to preserve wealth, many retail investors believe that they are capable of outperforming the market, eliminating the need for industry professionals such as asset managers. After thorough examination and implementation of financial management concepts such as Stovall Sector Rotation and Markowitz Modern Portfolio Theory, it is evident that there is still a strong demand for industry professionals. Financiers such as Portfolio Managers call upon their fiduciary responsibility to clients to accurately develop portfolios that are reflective of clients' risk characteristics as well as their economic outlook. After identifying ways in which portfolio management can be done with both greater efficiency and accuracy, I took it upon myself to develop automated models capable of ensuring diversification as a means to mitigate idiosyncratic risk exposure within an equity-based portfolio whilst adhering to one's economic outlook.
Recommended Citation
Kimmel, Max, "Utilizing Financial Modeling to Make Informed Equity Decisions Situated in the Scholarly and Public Sphere" (2025). Honors Senior Capstones and Theses. 22.
https://docs.rwu.edu/honors_theses/22
Comments
Submitted to William Palm, Ph.D., Director, University Honors Program and Michael Melton, Ph.D., Founding Director, Center for Advanced Financial Education,The Yeaton Professor of Finance.
In fulfillment of the requirements for the University Honors Program Capstone.