The Portfolio Optimization template identifies the optimal capital weightings for a portfolio of financial investments that gives the highest return for the lowest risk. The design of the portfolio optimization model enables it to be applied to either financial instrument or business stream portfolios. The portfolio optimization template is simple and flexible with help icons throughout to assist with input and output results. Input of historical data for the analysis is supported by options to specify absolute prices or returns, number of current units held and a free tool to download financial market data for securities from the internet. Advanced optimization options include setting minimum and maximum constraints for weightings in the optimal portfolio and risk analysis options for overall volatility under the Sharpe ratio, downside risk or semi-deviation under the Sortino ratio. The optimization can be set to maintain at least the current portfolio level of return and specify a target return for which the probability of attaining to calculated with Monte Carlo simulation. The portfolio optimization results are displayed with weighting charts and return distributions as well as acquisition and liquidation actions required for reweighting. The Portfolio Optimization template is compatible with Excel 97-2010 for Windows and Excel 2011 or 2004 for Mac as a cross platform portfolio optimization solution.
Platform Windows 95/98/ME
Operating Systems Windows 95/98/ME,Windows NT/2000,Mac,Windows XP,OS X - Macintosh,Windows NT/2000/2003/SBS2003,Windows Vista,Windows 7
System Requirements Excel 97 or higher for Windows. Excel 2004 or 2011 for Mac OS X.
Date added 31 Jan 2011
Last Updated 14 May 2012
Tags portfolio, optimization, excel, asset, allocation. optimal, capital, weightings, risk, return, maximize, sharpe, ratio