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Sensitivity analysis gives you insight in how the optimal solution changes when you change the coefficients of the model. After the solver found a solution, you can create a sensitivity report. Read more on this free link
If you have ever used the Excel Solver add-in, you know it is an extremely powerful tool. What you may not know is that Excel Solver can also generate a sensitivity report that can be very helpful in understanding how your solution is affected by changes in the input values. . Read more on this free link
EFFICINET FRONTIER, BENEFITS 7& USES:
As an investor, wouldn’t it be nice to know that your portfolio both limits your risk and maximizes return? Ideally, it will do just that. The efficient frontier is a set of investment portfolios that maximizes returns while minimizing risk. Read more on this free link
Portfolio optimization is one of the most basic skills you’ll need to acquire when actively managing your investments. With regular portfolio reviews, you can make adjustments to increase the likelihood you’ll end up with comfortable returns instead of frustrating results. A few quick exercises can help make portfolio optimization more straightforward. . Read more on this free link
Portfolio return refers to the gain or loss realized by an investment portfolio containing several types of investments. Portfolios aim to deliver returns based on the stated objectives of the investment strategy, as well as the risk tolerance of the type of investors targeted by the portfolio. Read more on this free link
Standard Deviation (SD) is a technique of statistics that represents the risk or volatility in investment. It gives a fair picture of the fund's return. It tells how much data can deviate from the historical mean return of the investment. Read more on this free link
Mean-Variance Optimization in Practice
For many investors, the financial markets are governed entirely by mathematical equations applied to aspects of a security’s price and trading volume, among other variables. Read more on this free link
After you learn how to calculate
standard deviation and what it can tell you, the next logical step is to find out when this concept becomes useful. So, where is standard deviation used in real life? . Read more on this free link
standard deviation and what it can tell you, the next logical step is to find out when this concept becomes useful. So, where is standard deviation used in real life? . Read more on this free link
Covariance measures the directional relationship between the returns on two assets. A positive covariance means that returns of the two assets move together while a negative covariance means they move inversely. Risk and volatility can be reduced in a portfolio by pairing assets that have a negative covariance. Read more on this free link
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