Portfolio Management and Optimization in Excel

Learn How to Construct and Optimize Portfolios, Manage Risks, and Achieve Investment Objectives Using the Power of Excel

Created by: 365 Careers
Creating opportunities for Data Science and Finance students

What Will I Learn?

• Master fundamental concepts of financial markets and market participants
• Acquire an in-depth understanding of individual and portfolio approaches to investing, portfolio management process, and diverse needs of various investor types
• Explore the intricacies of the asset management industry and a wide range of pooled investment vehicles available
• Download and interpret financial data
• Grasp how to calculate the mean, variance, and correlation of asset returns
• Understand the importance of diversification in reducing portfolio risk
• Differentiate between systematic and unsystematic risk and understand their impact on portfolio management
• Apply the principles of Modern Portfolio Theory and use the Capital Asset Pricing Model to estimate the expected return on equity
• Use Excel to build an efficient frontier, allowing you to optimize your portfolio for a given level of risk
• Evaluate portfolio performance using key performance indicators such as the Sharpe ratio, Treynor ratio, M2, and Jensen’s alpha
• Explore the difference between the Capital Allocation Line (CAL) and the Capital Market Line (CML)
• Delve into the concept of risk aversion and how it relates to shaping an investor's profile
• Dive into investment policy statements from a practical perspective
• Analyze an investor's financial risk tolerance by distinguishing between their willingness and ability to take risks
• Understand the significance of written policy statements
• Analyze an investor's financial risk tolerance by distinguishing between their willingness and ability to take risks
• Explore ESG investing and learn how to integrate it into portfolio planning and construction
• Identify and quantify the types of risks a company faces
• Find why risk elimination is not the goal of a firm's risk management system
• Define the principles of technical analysis as well as its underlying assumptions for effective investment decision-making
• Examine common technical analysis indicators and chart patterns to enhance investment analysis skills
• Illustrate how technical analysts use cycles in their analyses
• Develop critical thinking and analysis skills to make informed investment decisions

Requirements

• No prior knowledge is required
• A spreadsheet tool: Microsoft Excel (any version) or Google Sheets

Target audience

• Beginner investors
• Individuals interested in investments
• Portfolio managers
• Finance professionals, including analysts, investment bankers, and asset managers
• Individual investors looking to manage their personal investment portfolios more effectively
• Financial advisors and planners seeking to deepen their understanding of portfolio management techniques
• Anyone interested in stock markets and financial securities
• Anyone interested in learning how to use Excel for financial analysis and modeling, including professionals in other fields who want to expand their skill set.