The Portfolio Optimization model calculates the optimal capital weightings for a basket of financial investments that gives the highest return for the least risk. Results display action required and probability analysis through Monte Carlo simulation
The key features of the Portfolio Optimisation template include: - Ease and flexibility of input, with embedded help prompts.
- Ability to specify the number of units held in each product or business. - Specify minimum and maximum constraints for the optimised portfolio. - Unique 'Maintain Current Return Level' option to ensure that return is not deteriorated at the expense of risk. - Modify correlation matrix and portfolio dynamics before optimization process. - Intuitive graphical result display with Monte Carlo simulation, including probability analysis on specified 'Target' return level.
