Optimal portfolio selection and application of İstanbul Stock Exchange

Capital is one of the most important factor providing the developing countries through economic development. Savings in a country are directed to active, productive and profitable investment fields, this provides economic development accelerated. At this stage, capital market is put into use. The techniques of portfolio management and the need for portfolio models have increased by the time individual and organizational investors starting to use their savings. Different kinds of theoric models are developed to understand complex structure of nowadays capital markets and to help individuals and organizations that work in this field. The relation between risk and income and the factors that effect stocks and bonds trading form the focus point of these theoric models. The aim is to direct the investors to the right way and to find solution for earning more by decreasing the risk of investment. In this study the question of ?which stocks and bonds must the investor select to get the maximum use??. is searched. For this, Modern Portfolio Theory will be discussed and the study will be done with the stocks that are traded Istanbul Stock Exchange Market Textile Sector. Optimum portfolios will be determined after some chosen alternative porfolios are evaluated according to Markowitz Diversification Model.