The Black-Litterman Model is a mathematical model used for portfolio allocation and optimisation. It is mainly used by portfolio managers of large investors, like insurance companies and mutual funds, to allocate their resources in various investments and assets. It was developed by Fischer Black and Robert Litterman of Goldman Sachs in 1990. The BL model … Read more
The Defensive Investor (Utility) Strategy by Benjamin Graham What is Defensive investor strategy? Benjamin Graham needs no introduction in the world of stock market. He was a mentor to Warren Buffet and a prominent face who redefined the flow of investing in … Read more
From both a mathematical and emotional perspective, large losses have a much larger impact than large gains on the probability that you will achieve your long-term investing goals. Hence, risk management can quickly become a gamble if models are not understood and the complexity of dependencies and their impact on risk is underestimated. Portfolio risk … Read more
Yahoo Portfolio is a great way to keep track of your investments and stock purchases online. Yahoo Finance portfolio has a great and intuitive way to add your transactions and then track your portfolio in real-time. And with the “Create New View” screen you can simply add many more parameters in the table and compare … Read more
The Wealth Index of portfolio with MarketXLS calculates the highest rate of return for the investment. The MarketXLS add-in enables it to apply to either financial instrument or business portfolios. The wealth index is a popular function to evaluate the investment and to calculate the returns. What is Wealth Index The wealth index is a … Read more
The Portfolio Optimization with MarketXLS calculates the optimal capital weightings for a basket of investments that gives the highest return for the least risk. The MarketXLS add-in enables it to be applied to either financial instrument or business portfolios. The ability to apply optimization analysis to a portfolio represents an excellent framework for driving capital … Read more
Monte Carlo Simulation Excel is an excellent tool for investors when assessing the potential risks associated with the portfolio and asset allocation. This article will discuss what it is, how it is works, how MarketXLS add-in calculates Monte Carlo simulation of your portfolio. The Monte Carlo approach is a computer-based method that uses statistical sampling … Read more
Value-at-risk using Excel is one of the most important financial tools that help an investor measure the risk of an investment portfolio. This article will discuss what it is, how it is then calculated, how MarketXLS calculates the Value-at-risk of your Portfolio. Value-at-risk is a statistical measure of the riskiness of portfolios of assets. It … Read more
The Efficient frontier using excel is one of the most important financial tools that help an investor compose an investment portfolio with the maximum returns and minimum amount of risk. This article will discuss what it is, how it is then calculated, and how MarketXLS calculates it of your Portfolio. Contents: What is Efficient frontier … Read more
In this article, we will look at how you can use MarketXLS’s portfolio beta calculator template to easily calculator Beta of your portfolios. MarketXLS has a very strong portfolio analytics engine that can get you all kind of analysis of your portfolio with easy to use Excel functions What is Beta? Beta is a way … Read more
