Theoretical Framework and Empirical Analysis of Modern Household Asset Allocation

Abstract

Based on modern portfolio theory, this paper constructs an asset allocation analysis framework applicable to the Chinese market. Using quantitative analysis methods, it compares the risk-return characteristics of different asset classes and introduces the Sharpe ratio for risk-adjusted performance evaluation. The research results indicate that in the current market environment, a diversified investment portfolio can effectively balance risk and return, providing investors with superior risk-adjusted returns. This study offers a systematic asset allocation decision-making method for individual investors.