Stock Market Model in Romanian Pharmaceutical Sector

Abstract

Abstract-When making an investment decision it is veryimportant to analyze the profitability and the portfolio risk. The evolution of the stock prices included in the portfolio can influence the overall portfolio profitability. A major risk of a single share can bring a surplus of risk to the overall portfolio.It is also important to analyze the market as one stock can influence the entire market. With this in view, this paper aims at analyzing the impact that the risk of a single stock has on the portfolio or the modification determined by the price of a stock on the entire portfolio return.Index Terms-Investment decision, portfolio rentability, portfolio risk, stock market model.