We calculate the expected return and standard deviation of an N asset portfolio in Excel. We cover both the manual way and quick Excel shortcuts involving SUMPRODUCT and MMULT which help to calculate these figures instantly. In our example, our portfolio consists of 5 stocks where each has their own expected return as well as their respective weights. We also have a variance covariance matrix where the diagonal cells contain the variance of each asset while the other terms correspond to the covariance between assets. We will need to use the matrix to calculate the portfolio standard deviation.
Calculate Risk And Return Of A 3-Asset Portfolio In Excel (Expected Return And Standard Deviation):
https://youtu.be/yfjRev3rFcQ
Calculate Risk And Return Of A Two-Asset Portfolio In Excel (Expected Return And Standard Deviation):
https://youtu.be/GwLF8RHCZeQ
Calculate The Minimum Risk Two Stock Portfolio Using SOLVER In Excel:
https://youtu.be/XEzPi9WxptQ
How To Plot The Efficient Frontier For A Two-Stock Portfolio In Excel:
https://youtu.be/mIWf0Z-jMe0
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[email protected]Overview: (0:00)
Expected Return - Manual: (1:30)
Expected Return - Shortcut: (2:45)
Standard Deviation - Manual: (3:32)
Standard Deviation - Shortcut: (8:19)