When you use betas and historical return data to optimize your investment portfolio, it helps to have your data laid out in a systematic, logical way.
- [Voiceover] When you use beta's and historical return data…to optimize your investment portfolio,…it helps to have your data laid out…in a systematic, logical way.…In this movie, I will show you…one way to organize your worksheet…and this data to make the inputs and results understandable.…My sample file is the investments_O2 workbook.…You can find it in the Chapter Two folder…of your exercise files collection.…I wanted to save you the busy work…of entering in the data that you'll use for analysis,…so I created a worksheet outline for you.…
I have a set of beta's for a series of eight funds.…Those are in cells C3 through C10.…And then I have the average return for each of those funds.…And those are in cells D3 through D10.…So we have the average annual return,…and the historical beta of the fund.…The funds are named Fund One through Fund Eight.…So I have in cell B3 I'll type Fund One.…
I'll type that in and press Enter.…The funds are named Fund One through Fund Eight…so I'll click cell B3,…move my mouse pointer to the bottom, right corner,…
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- Finding target values using Goal Seek
- Finding a solution using Solver
- Tuning investment portfolios
- Organizing worksheets
- Creating objective and control formulas
- Experimenting with different constraints
- Optimizing resource placement
- Defining decision trees