Abstract: The paper applies the modern portfolio theory, takes the data of Hunan Province as example, and makes a quantitative study on the demolition farmers’ household financial management. It chooses the suitable investment tools for the demolition farmers, constructs the portfolio model, uses the investment revenue data from 2001 to 2015, calculates the optimal portfolio ratio and makes the sensitivity analysis, and provides the decision-making suggestions about the asset allocation of the demolition farmers’ household, to maximize the ef...
