The Optimal Strategy of the Goodgrant Foundation

Abstract

The Goodgrant Foundation want to help improve educational performance of undergraduates attending colleges and universities in the United States, and it maintains for five years, starting July 2016, and they wonder how to invest. To begin with, we primarily screen 7804 school samples and elect 2977 relatively excellent schools. Investors are divided into three categories according to their attitude towards the risk (risk preference, risk neutral and risk aversion). The optimal investment plan of risk preference, risk neutral, and the risk aversion investments are 54 schools, 93 schools, and 95 schools respectively by the means of technique of Markowitz mean-variance theory.