Examining the Effectiveness of Mean Variance Approach of Prescriptive Analytics in Re-Designing the Purposefully Designed Equity Portfolios- A Study from Indian Capital Markets

This research study has been done to evaluate the effect of mean-variance optimisation method of re-designing the equity portfolios on the portfolio value. The study also examines the influence of the length of the historical returns data on the gains from such re-designing on periodic basis. The study uses hypothesis testing on the returns to show that the portfolio returns on re-designed portfolios are higher than the ones that are not. The study also shows that there exists an optimal length of the historical returns dataset to be considered in the mean variance optimization approach.