From the course: Excel for Investment Professionals

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Scenario analysis in a portfolio

Scenario analysis in a portfolio - Microsoft Excel Tutorial

From the course: Excel for Investment Professionals

Start my 1-month free trial

Scenario analysis in a portfolio

“

- [Narrator] One common challenge that investors often face, is figuring out how to assess the expected return, for their investments under a variety of different scenarios. Excel can be very helpful with this. I'm in the 05_02_Begin Excel file. Now what we have here are five different investments, ranging from Ali Baba, to Bond B. So it's a series of stocks and bonds. And we have outlined three different scenarios, and the returns and probabilities of those scenarios. From here, we'd like to go though and figure out what the expected returns are, for each of these different investments. To do that, I'm going to multiply the probability, of each scenario, times the expected return in that scenario, and do this for all three of my scenarios being careful to anchor my probabilities for my scenarios along the way, so that I can easily apply this across the entire portfolio. So we're going to anchor cells, G9, F9, and H9, and multiply by the associated returns above. And when we do, we…

Contents