The Portfolio Optimization template calculates the optimal capital
weightings for a basket of investments that gives the highest return
for the least risk. The unique design of the template enables it to
be applied to either financial instrument or business portfolios. The
ability to apply optimisation analysis to a portfolio of businesses
represents an excellent framework for driving capital allocation,
investment, and divestment decisions.
Key features of the Portfolio Optimization template include:
- Ease and flexibility of input, with embedded help prompts.
- Ability to specify the number of units held in each product or
- Specify minimum and Max
imum constraints for the optimized
- Unique 'Maintain Current Return Level' option to ensure that return
is not deteriorated at the expense of risk.
- Intuitive graphical result display with Monte Carlo simulation,
including probability analysis on specified 'Target' return level.