All Industries, General Excel Financial Models

Excel, Investors, Matrix, Personal Finance, Return on Investment (ROI), Tutorial, Users

This Template is to provide users with a ready-to-use calculator of stock portfolio optimization template to optimize the expected return of their investment.

Portfolio optimization is the process of selecting the best portfolio (asset distribution) out of the set of all portfolios being considered, according to some objective.

The objective typically maximizes factors such as expected return and minimizes costs like financial risk. Factors being considered may range from tangible (such as assets, liabilities, earnings, or other fundamentals) to intangible (such as selective divestment).

This model is based on Harry Markowitz’s Modern portfolio theory minimizing the standard deviation of the portfolio (risk) under a given expected return of the investor, solving the weighted percentage of the portfolio’s components by EXCEL function SOLVER.

In the model, we have explained how to work with the template and SOLVER function. The SOLVER is an Add-in function and could be added in Excel “Option”.

The template is user-friendly for professional analysts or users with little experience in financial modeling since its a simple design pattern and easy-to-follow logic.

The model does not place any complicated formulas or VBA codes to guarantee the user’s satisfaction. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly priority.

Please feel no hesitation in contacting us if you experience any problems using the models provided.

In addition, if you need a customized model for your specific business, please let us know, and we would be happy to help you with this.