![]() ![]() The formula in G5 using the named ranges w and e is the Excel function SUMPRODUCT(e,w), which gives the weighted return, provided the number of elements in each of the column vectors is the same. ![]() The expected portfolio return (in cell G5) is the weighted sum of the expected returns on each of A, B and C (in fact, 0.093 or 9.3%). The portfolio is made up of the three assets in the proportions set out in cells E5:E7, a second column vector with range name w in the spreadsheet formulas and referred to as wtsvec in the VBA code.įigure 4.4 Risk and return for portfolio of three assets in PFolio sheet The asset returns are in cells C5:C7, a column vector referred to with range name e in the spreadsheet formula and in the VBA code referred to as retsvec. The spreadsheet in Figure 4.4 contains risk and return information for three assets, A, B and C, and shows the results of constructing a portfolio with equal amounts of each of the three assets. ![]() To illustrate the process, a simple spreadsheet formulation using Excel functions is explained, then the cell formulas are coded in VBA to produce the corresponding functions. Functions to calculate the mean and variance of returns for portfolios are easy to develop. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |