INVESTMENT PORTFOLIO MANAGEMENT BASED ON MATHEMATICAL MODELING

Abstract. The purpose of this study is to deeply analyze and forecast investment decisions using mathematical methods and models. The application of mathematical modeling in the field of investment is a powerful analytical tool that contributes to a more accurate understanding of the dynamics of financial markets, risk assessment and the effectiveness of selected investment strategies.

The use of mathematical methods and models allows investors and portfolio managers to make informed decisions based on quantitative data and detailed analysis. One of the important tasks that are solved with the help of mathematical modeling is the determination of optimal parameters of investment strategies. These parameters include asset shares in the portfolio, rebalancing frequency, and other factors that influence the success of the strategy.

Modeling also allows for a multitude of risks, including market volatility, inflation, interest rates and geopolitical events. This provides more accurate risk management and allows strategies to be adapted to changing macroeconomic conditions.

Mathematical models also have the advantage of their ability to simulate and test different scenarios. This allows us to assess the likelihood of achieving investment objectives under different market conditions, as well as to evaluate potential risks and opportunities. This approach provides more informed decision-making and increases the success of investment strategies.

Overall, the use of mathematical methods and models in investment activities allows for more accurate analysis, forecasting and management of investment decisions, which contributes to a more sustainable and successful financial future.

Keywords: assets, loan repayment, investment portfolio.