Excel Solver for Portfolio Risk and Return Analysis

Описание: Excel solver helps investors to decide the best asset allocation. The approach is simple and you can learn with the help of this video. sorry for the sound quality.


The video covers the topic of portfolio analysis using Excel Solver. The presenter explains the concepts of portfolio theory, risk and return, and shows how to build a portfolio and optimize it using Solver. The video is divided into sections and each section builds on the previous one. The presenter uses a sample data set and explains how to calculate portfolio returns, risk, and correlation. He then shows how to create a portfolio of stocks and optimize it to achieve the desired risk and return using Solver.

Important aspects highlighted:

Explanation of portfolio theory, risk and return concepts
Calculation of portfolio returns, risk, and correlation using Excel
Creation of a portfolio of stocks in Excel
Optimization of the portfolio to achieve desired risk and return using Excel Solver
Detailed content:
The video starts with an introduction to portfolio theory and the importance of diversification. The presenter explains the concepts of risk and return and shows how to calculate them using Excel. He then demonstrates how to create a portfolio of stocks and calculate its returns and risk.
In the next section, the presenter shows how to calculate the correlation between the stocks in the portfolio using Excel. He then explains the concept of efficient frontier and shows how to plot it using Excel.

In the third section, the presenter shows how to create a portfolio in Excel by allocating weights to each stock. He then demonstrates how to calculate the portfolio return and risk.

In the fourth section, the presenter introduces Solver and shows how to use it to optimize the portfolio to achieve the desired risk and return. He explains the objective function and the constraints and shows how to set them up in Solver.

Finally, the presenter shows how to interpret the results of Solver and how to use them to rebalance the portfolio.

Key points:
Portfolio theory, risk and return concepts
Calculation of portfolio returns, risk, and correlation using Excel
Creation of a portfolio of stocks in Excel
Optimization of the portfolio to achieve desired risk and return using Excel Solver
Helpful material:
Investopedia's Portfolio Management tutorial: https://www.investopedia.com/articles...
Excel Solver tutorial: https://support.microsoft.com/en-us/o...
Detailed description:
The video provides a comprehensive overview of portfolio theory and demonstrates how to use Excel Solver to optimize a portfolio. The presenter explains the concepts of risk and return, portfolio diversification, and efficient frontier. He then shows how to calculate portfolio returns, risk, and correlation using Excel. The video also covers how to create a portfolio of stocks in Excel by allocating weights to each stock and how to optimize the portfolio using Excel Solver.
The video is well-structured and easy to follow. The presenter explains each concept in a clear and concise manner, and provides step-by-step instructions on how to perform each task. The sample data set used in the video is easy to understand, and the Excel formulas are clearly explained.

Relevant keywords:
Excel Solver
Portfolio theory
Risk and return
Diversification
Efficient frontier
Portfolio optimization