Research on the investment value of China’s medical sector in the context of COVID-19

Ekonomska Istraživanja

Zuhao Zou¹  Xiaoping Wang¹ 

[1] Faculty of Professional Finance and Accountancy, Shanghai Business School, Shanghai, China;

关键词: COVID-19;    MV Model;    CAPM model;    medical sector;    investment value;    G11;   

DOI  :  10.1080/1331677X.2022.2080091

来源: DOAJ

【 摘 要 】

COVID-19 has slowed the growth of, the global economy, which has certain practical significance. Consequently, this study seeks to analyze the investment opportunities in the medical sector before and after the COVID-19 outbreak. In this study, the Markowitz mean–variance (MV) model, capital asset pricing model (CAPM), and correlation models are constructed based on the principle of Markowitz MV and correlation analysis. Simultaneously, statistical analysis is used to verify the analysis, and the MATLAB statistical tool is used to build the model. The results show that the actual expected yield of China’s medical sector is significantly higher than that calculated by the CAPM before and after the pandemic, and that the investment value of the medical sector is undervalued by the market. From the perspective of risk, China’s medical sector has a stable systemic risk premium. Based on the above analysis, when building investment portfolios in the post-pandemic era, investors should appropriately allocate stocks in the medical and pharmaceutical sectors to improve the portfolio income and diversify the investment risk.

【 授权许可】

Unknown