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OPPORTUNITIES IN CLEAN ENERGY EQUITY MARKETS: THE COMPELLING CASE FOR NUCLEAR ENERGY INVESTMENTS.
- Source :
- Journal of Business Economics & Management; 2024, Vol. 25 Issue 5, p960-980, 21p
- Publication Year :
- 2024
-
Abstract
- This study analyzes the post-pandemic dynamics and investment potential of diverse clean energy equities, including solar, wind, nuclear, and other renewable assets, highlighting nuanced differences and investment opportunities within this critical sector. The analysis reveals that nuclear energy portfolios (NLR) exhibit notable resilience, sustaining growth amidst significant market volatility. Within the mean-variance portfolio optimization (MVO) framework, this study identifies strategic investments that balance risk and return, underscoring NLR's role as a stabilizing force and return enhancer, as evidenced by its predominant allocation in both Minimum Variance and Tangency Portfolios. Employing advanced stochastic modeling and simulation techniques, the research uses a uniform distribution to generate random portfolio weights, ensuring comprehensive and unbiased exploration of the feasible solution space, thereby enhancing the robustness of the portfolio optimization process. The findings also illustrate the diversification merits of integrating clean energy equities into broader portfolios comprising traditional stocks and bonds, with nuclear-focused equity significantly enhancing the efficient frontier. Results underscore the superiority of the nuclear energy exchange-traded fund (ETF) both as a standalone investment and as a crucial component of diversified portfolios, highlighting its contribution to investment performance and risk management. This approach offers insights for investors and policymakers navigating the intersection of finance, sustainability, and economic growth post-pandemic. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 16111699
- Volume :
- 25
- Issue :
- 5
- Database :
- Complementary Index
- Journal :
- Journal of Business Economics & Management
- Publication Type :
- Academic Journal
- Accession number :
- 181008693
- Full Text :
- https://doi.org/10.3846/jbem.2024.22350