Making a Profitable Portfolio of Cryptocurrencies and Other Assets

The formation of an effective diversified portfolio of various assets using the Markovitz model and the multidimensional GARCH model is the main focus of this work. In this work, a set of assets such as cryptocurrencies, stocks, bonds, and indices forms an investment portfolio. Each investor solves the problem of creating financial asset management in order to effectively invest capital, as well as determine the best ratio of invested capital among the selected assets. We modeled effective portfolios and compared them. The main goal is to create an optimal portfolio using the multidimensional GARCH model. In order to fulfill the goal, you need to solve the corresponding tasks: 1. Determine the basic theoretical foundations of investment portfolios, investigate their management and formation principle. 2. define the Harry Markowitz model, identify the strengths and weaknesses of the Harry Markowitz model. 3. Model effective portfolios based on the Harry Markowitz model using the GARCH multidimensional model 4. Get the results of the conducted models, perform their analysis, and give practical recommendations for modeling investment portfolios in the future.