This Excel spreadsheet implements Markowitz’s mean-variance theory. It optimizes asset allocation by finding the stock distribution that minimizes the standard deviation of the portfolio while maintaining the desired return.
This article describes how you can implement the Sharpe Ratio in Excel. As an alternative method, I’ll also give some VBA code that can also be used to calculate the Sharpe Ratio.
Insuring your long-term financial stability shouldn’t be a chore, but it often is. The financial services industry are far too keen on acronyms, jargon and in-speak. In this section, I’m going to define several terms that everyone should know.
Hedge funds traditionally use benchmarks like the Sharpe Ratio and Sortino Ratio to gauge the risk-efficiency of portfolios. The Sharpe Ratio is the effective return of a risky asset per unit of risk (i.e variance), while the Sortino Ratio is…