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Standard Deviation, Portfolio Returns Shortcuts

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    Standard Deviation, Portfolio Returns Shortcuts

    Can anyone help me with the following formulas? I understand how to do the calculations but not the shortcuts.. You need to take the returns along with their weight in the portfolio and then calculate std.dev, variance, and return.

    Screen Shot 2015-06-16 at 12.40.56 AM.png
    Last edited by davidvanpatten; 06-16-2015 at 12:50 AM.

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    Re: Standard Deviation, Portfolio Returns Shortcuts

    Hi there... and welcome to the Excel Forum. Unfortunately I don't understand what you want to do. Forget about the weights for the minute. Are you saying that you want the SD, Variance and "return" of 15, 10, -12, -4 and 3? If not, please explain again. Also, what do you understand by "return"?
    Glenn



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    Re: Standard Deviation, Portfolio Returns Shortcuts

    Quote Originally Posted by davidvanpatten View Post
    Can anyone help me with the following formulas? I understand how to do the calculations but not the shortcuts.. You need to take the returns along with their weight in the portfolio and then calculate std.dev, variance, and return.
    Attachment 401284
    For your example:

    C7, portfolio sd: =SQRT(C8)
    C9, portfolio return: =SUMPRODUCT(B1:B5,C1:C5)

    Your example does not provide sufficient information to calculate the portfolio variance (C8).

    To learn how to do the calculations, Click here [1] for an explanation with 3 assets and N assets.


    -----
    [1] www.ewp.rpi.edu/hartford/~youneh/INVII/Week%204/mv_analysis_2up.pdf

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