Research on Investment Model of Internet Financial Loan Platform

Abstract

In recent years, Peer-to-peer(P2P) lending platforms are in a stage of rapid development in China, which gradually become one of the important investment options for investors. A key challenge for personal investors in P2P lending market is how to get the expected benefit under certain risks. In this paper, we present the efficient frontier for investors with the combination theory of random forest, nuclear regression and Markowitz portfolio theory. The final experimental result reveals that the frontier can effectively provide investors more investment options.