CONSTRUCTION OF A FINANCIAL PORTFOLIO ON THE
BUCHAREST STOCK EXCHANGE USING RISK/RETURN ANALYSIS

Laura Raisa Miloș, University „Eftimie Murgu” of Resita, Romania
Marius Cristian Miloş, University „Eftimie Murgu” of Resita, Romania

ABSTRACT: The purpose of the paper is to present the advantages of the risk/return analysis when
creating an optimum financial portfolio, with minimum risk, without sacrificing return. Having in
consideration a holding period of three months (February-April 2014) and the stocks included in
the Bucharest Stock Exchange index BET, we show how can be minimized the risk associated to
the portfolio and which is the minimum variance point for a two titles portfolio.

Keywords: portfolio management, risk, return, BSE

JEL Codes: G10, G11