Optimization of Investment Portfolios Risk And Profitability Balance

Investment portfolio optimization is one of the main directions of modern financial management.The primary goal of this process is to establish an optimal balance between risk and return. Proper portfolio formation not only ensures the protection of investors’ capital but also contributes to the achievement of long-term profitability. Risk management involves diversification, appropriate asset selection, analysis of market trends, and the application of mathematical-statistical models. Profitability, on the other hand, depend largely on the income potential of assets included in the portfolio, market conditions, and economic changes. Therefore, portfolio optimization plays a crucial role in investors’ decision-making processes from both theoretical and practical perspectives. The findings indicate that an optimal portfolio not only minimizes risks, but also ensures stable profitability, thereby fostering higher economic efficiency.