Application of Dynamic Programming Model in Stock Portfolio—under the Background of the Subprime Mortgage Crisis

摘要

Known as "Financial 9.11", the U.S. subprime mortgage crisis causes great shock to the global economy. Meanwhile, global stock markets are in constant turmoil and suffer heavy losses one after another. Stock portfolio can disperse investment risks effectively to maximize investment income. This paper introduces dynamic programming method, establishes dynamic programming model and allocates funds between stocks in stock portfolio reasonably so as to maximize income, thus providing an effective approach to solute similar fund allocation issues.