Mean Variance Portfolio Selection Utilizing Services Subsector’s (Media, Telecommunications, and Information Technology) 30-Year Philippine Stock Exchange Trading Data

The Philippine Stock Exchange (PSE), established in 1927, has significantly evolved, especially since the 1980s with major reforms and technological advancements. This paper analyzes the performance of portfolios in the Media, Telecommunications, and Information Technology sectors listed on the PSE over a 30year span. Using mean-variance analysis, it evaluates portfolio optimization by balancing risk and return. Drawing on data from 1993 to 2022, the study examines portfolios across various risk-return frontiers (RRFs) and compares the service sector’s performance. The results highlight varying portfolio metrics across RRFs, with some showing outperformance and higher RRFs leading to diminishing returns. The study also identifies key companies with significant stock allocations, providing strategic insights for portfolio construction. These findings offer investors guidance on optimizing portfolio strategies within the PSE for better decision-making and investment outcomes.