Artificial Portfolio Simulator

Abstract

Portfolio selection simulator of social interaction is proposed in this paper. We explained why different investors possess different portfolios in time and why portfolios change with the change of the environment. The developments of the games are path-dependent depending on several factors. The most significant are the returns, the rate of maximization, selection of an investor, the presence of liquidity investors and the number of alternatives. The main empirical conclusion is that investors opt for medium-risky to risky alternatives and avoid both extremes.