Impact Investing: Portfolio Optimization in Conservation Finance

This bachelor thesis investigates the implementation of Markowitz's Mean-Variance model across multiple time horizons, encompassing daily, monthly, quarterly, and annual returns. The study seeks to deepen our understanding of how different investment timeframes influence portfolio dynamics and optimal asset allocation strategies. By adopting a multi-horizon approach, the research aims to uncover the ways in which asset volatility and inter-asset correlations fluctuate across various time scales, thereby impacting investment decisions. The analysis reveals that these temporal factors play a crucial role in shaping portfolio performance. The findings provide valuable insights for investors, particularly those in the field of conservation finance, who are looking to optimize their asset distribution strategies. By considering the effects of different time horizons, investors can potentially enhance their portfolio construction and management techniques, leading to more informed and effective investment decisions in the context of sustainable and conservation-oriented financial practices.