—When making an investment decision it is very
important 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.
—Investment decision, portfolio rentability,
portfolio risk, stock market model.
The authors are with Bucharest University of Economic Studies, Romania
(e-mail: firstname.lastname@example.org, email@example.com,
Cite:Adina Ionela Străchinaru, Lavinia Mihaela Guțu, and Vasile Ilie, "Stock Market Model in Romanian Pharmaceutical Sector," International Journal of Trade, Economics and Finance vol.5, no.1, pp. 126-129, 2014.