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Home : Business Finance :
Portfolio Optimization

The Portfolio Optimization template calculates the optimal capital weightings for a basket of investments that gives the highest return for the least risk. The unique design of the template enables it to be applied to either financial instrument or business portfolios. The ability to apply optimisation analysis to a portfolio of businesses represents an excellent framework for driving capital allocation, investment, and divestment decisions.

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Portfolio Optimization screenshot

Key features of the Portfolio Optimization template include:
  • Ease and flexibility of input, with embedded help prompts.
  • Ability to specify the number of units held in each product or business.
  • Specify minimum and maximum constraints for the optimized portfolio.
  • Unique 'Maintain Current Return Level' option to ensure that return is not deteriorated at the expense of risk.
  • Intuitive graphical result display with Monte Carlo simulation, including probability analysis on specified 'Target' return level.