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Solver - creating portfolios

  1. #1
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    09-24-2006
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    Question Solver - creating portfolios

    Hi can anyone help with this

    I have the data below showing returns for the market and 5 stocks over the last 6 years I need to use solver to create 5 portfolios from the data below

    Year Market risk free A B C D E
    return rate
    1 7.05 2.5 8.25 6.4 9.25 10.5 11
    2 6.2 3 7.9 6.2 6.25 10.25 8.5
    3 9.3 3.25 11 7 8.5 12.75 10.5
    4 10 3 13 7.5 10 13 14
    5 9.5 4 12.5 8 12.5 12.5 12.5
    6 11 4.25 13 9.6 12.25 13 14.5
    Last edited by Tonii; 09-24-2006 at 05:55 AM.

  2. #2
    Valued Forum Contributor
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    07-11-2004
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    851
    well, are there any guidelines? The 5 best"portfolios" probably would belimited to one invetment each. Is there a minimum # of inventemtns, or a maximum % of one inventment in a portfolio?
    not a professional, just trying to assist.....

  3. #3
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    I have been asked to use linear regression to find the beta, alpha and other info for each stock. (which I have done) Now I have to use solver to form 5 different portfolios. Then A portfoilio with a beta of 1 ( I assume this is the reference cell that I need to use in solver). Comment on how the return and risk of the portfolio compares to the return and risk of the market

  4. #4
    Valued Forum Contributor
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    07-11-2004
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    Solver could solve for the best portfolio, subject to whatever constraints you wish to put in place. How do you expect to get 5 portfolios from solver?

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