el_juanmarron
New Member
- Joined
- Sep 11, 2011
- Messages
- 11
For my portfolio management class we have been assigned a problem in which we have to find the efficient frontier for this- <b>Excel 2010</b><table cellpadding="2.5px" rules="all" style=";background-color: #FFFFFF;border: 1px solid;border-collapse: collapse; border-color: #BBB"><colgroup><col width="25px" style="background-color: #DAE7F5" /><col /><col /><col /><col /><col /><col /><col /><col /></colgroup><thead><tr style=" background-color: #DAE7F5;text-align: center;color: #161120"><th></th><th>A</th><th>B</th><th>C</th><th>D</th><th>E</th><th>F</th><th>G</th><th>H</th></tr></thead><tbody><tr ><td style="color: #161120;text-align: center;">2</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: #161120;text-align: center;">3</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: center;;">Exp Ret</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style=";">Return Covariance Matrix</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: #161120;text-align: center;">4</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style=";">Asset A</td><td style=";">Asset B</td><td style=";">Asset C</td></tr><tr ><td style="color: #161120;text-align: center;">5</td><td style=";">Asset A</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.05</td><td style="text-align: right;;"></td><td style=";">Asset A</td><td style="text-align: right;;">0.04</td><td style="text-align: right;;">0.02</td><td style="text-align: right;;">0</td></tr><tr ><td style="color: #161120;text-align: center;">6</td><td style=";">Asset B</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.1</td><td style="text-align: right;;"></td><td style=";">Asset B</td><td style="text-align: right;;">0.02</td><td style="text-align: right;;">0.1</td><td style="text-align: right;;">0.06</td></tr><tr ><td style="color: #161120;text-align: center;">7</td><td style=";">Asset C</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.15</td><td style="text-align: right;;"></td><td style=";">Asset C</td><td style="text-align: right;;">0</td><td style="text-align: right;;">0.06</td><td style="text-align: right;;">0.16</td></tr></tbody></table><p style="width:3.6em;font-weight:bold;margin:0;padding:0.2em 0.6em 0.2em 0.5em;border: 1px solid #BBB;border-top:none;text-align: center;background-color: #DAE7F5;color: #161120">Sheet2</p><br /><br />
I did the work to find the Portfolio Expected Return and Standard Deviation, and I get this- <b>Excel 2010</b><table cellpadding="2.5px" rules="all" style=";background-color: #FFFFFF;border: 1px solid;border-collapse: collapse; border-color: #BBB"><colgroup><col width="25px" style="background-color: #DAE7F5" /><col /><col /><col /></colgroup><thead><tr style=" background-color: #DAE7F5;text-align: center;color: #161120"><th></th><th>A</th><th>B</th><th>C</th></tr></thead><tbody><tr ><td style="color: #161120;text-align: center;">9</td><td style=";">Portfoio Exp Ret</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.1</td></tr><tr ><td style="color: #161120;text-align: center;">10</td><td style=";">Portfolio variance</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.021911</td></tr><tr ><td style="color: #161120;text-align: center;">11</td><td style=";">Portfolio STD</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.148024</td></tr></tbody></table><p style="width:3.6em;font-weight:bold;margin:0;padding:0.2em 0.6em 0.2em 0.5em;border: 1px solid #BBB;border-top:none;text-align: center;background-color: #DAE7F5;color: #161120">Sheet2</p><br /><br />
Now I'm confused on how to use "Solver"?
I did the work to find the Portfolio Expected Return and Standard Deviation, and I get this- <b>Excel 2010</b><table cellpadding="2.5px" rules="all" style=";background-color: #FFFFFF;border: 1px solid;border-collapse: collapse; border-color: #BBB"><colgroup><col width="25px" style="background-color: #DAE7F5" /><col /><col /><col /></colgroup><thead><tr style=" background-color: #DAE7F5;text-align: center;color: #161120"><th></th><th>A</th><th>B</th><th>C</th></tr></thead><tbody><tr ><td style="color: #161120;text-align: center;">9</td><td style=";">Portfoio Exp Ret</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.1</td></tr><tr ><td style="color: #161120;text-align: center;">10</td><td style=";">Portfolio variance</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.021911</td></tr><tr ><td style="color: #161120;text-align: center;">11</td><td style=";">Portfolio STD</td><td style="text-align: right;;"></td><td style="text-align: right;;">0.148024</td></tr></tbody></table><p style="width:3.6em;font-weight:bold;margin:0;padding:0.2em 0.6em 0.2em 0.5em;border: 1px solid #BBB;border-top:none;text-align: center;background-color: #DAE7F5;color: #161120">Sheet2</p><br /><br />
Now I'm confused on how to use "Solver"?