Gregory Robert Pierce, Thesis Supervisor Brian Spangler Davis, Thesis Honors Advisor
Keywords:
Collectibles Portfolio Mathematics Sharpe Ratio Baseball Cards Whiskey Wine Videogames Alternative Asset Portfolio Optimization
Abstract:
Academics and Wall Street professionals have long worked to determine what the optimal composition of a portfolio of assets is. Traditionally, equity and fixed income products are at the forefront of this discussion. More robust studies have considered the merits of real estate, commodities, and currency-based investments and whether they deserve inclusion in a portfolio. This study goes one step further in an effort to assess whether or not items traditionally viewed as ‘collectibles’ belong in an investment portfolio. In order to make this determination, an analysis of the historical returns data for four different collectibles: whiskey, wine, baseball cards, and vintage videogames, is conducted. The risk-return profile from this data is analyzed using the Sharpe Ratio and is later sensitized to create a more concrete answer for the ultimate question: Are Collectibles Investable?
