Conclusion

As stated at the outset the aim of this chapter was to illustrate how Markovitz-type portfolio analysis can be implemented within Excel. This is best achieved by looking at the problem in its matrix format rather than its linear format and then implementing the

13 Note that an investment in Irish equities alone produces a risk of 2.93% per week with a return of 0.10% per week.

calculations using Excel's matrix algebra functions. If the problem is set up correctly it is then possible to use Excel's "Solver" function to optimise the portfolio subject to a variety of constraints and targets.

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