An investment portfolio for college students under the dependency and loss psychology of entrepreneurship

Abstract

This paper aims to design a suitable investment portfolio for college students under the dependence and loss psychology of entrepreneurship. Considering the market distribution of their entrepreneurial assets, college students' psychological features of loss were described by the prospect theory. Then, a portfolio model was constructed for college students under the dependence and loss psychology of entrepreneurship, in the light of the adjustment cost of investment portfolio. Inspired by the duality (optimization) theory, the authors constructed a dual portfolio model under the same conditions, and transformed into a linear programming model, which is easier to solve. Finally, the asset return features and effectiveness of our model were evaluated empirically. The results show that our model can optimize the investment portfolio for college students in entrepreneurial process.