Applying the Markowitz Model on a Global Market

The article deals both theoretically and practically with the issue of the security holdings' management, based on the Markowitz model. Markowitz studied the behaviour of the participants on the financial market from the point of view of maximizing profitability and minimizing the risk. The Markowitz model starts from the idea that any deed can have a possible risk, the situation being even more risky when given a higher volatility of income. Starting from the basic hypotheses of the Markowitz model I wanted to show the structure of an optimum portfolio placed first on the American market, and then I tried to diversify this portfolio by adding new deeds from the European, Latin American and Asian markets.