Applying Markowitz Portfolio Theory on Cambodia Securities Exchange

Abstract

This research bestows one of the most famous portfolio selection theories known as the Markowitz Portfolio Theory on Cambodia Securities Exchange. The result of the study indicates that in the case that short-selling is not prohibited, an optimal portfolio investment with the required rate of return of 20 percent per year is constructed through the long-position of FX and all of the securities listed in the CSX, such as stocks and bonds and the short-selling position of commodity goods, gold and crude oil. Long-position is applied only to all stocks and generates positive average annual return, while the assets, FX, gold, crude oil, and bond generates negative average annual return are not recommended to invest, in the case that short -selling is prohibited. The result of the survey on the undergraduate students majoring in accounting and finance reveals that the qualification of undergraduate students related to financial markets and financial instruments has a statistically significant relationship with the extent that lecturers or professors teach students how to apply financial theory in practice.

Keywords: Markowitz Portfolio Theory; Cambodia Securities Exchange; Survey