I have the three funds below with their own return and standard deviation. I want to find the optimal/efficient portfolio in Excel. Can you help me with this? (basically varying the weights of the 3 funds in the portfolio I want to find the best combination for the highest portfolio return and lower risk for instance). In Excel please. (If you need this info, suppose I have $2M to invest in this portfolio and you wan to maximize return for a targeted risk)
NU Bond E(r) 12.04% Stdev 15.6%
NU Equity E(r) 8.55% Stdev 5.76%
NU Cash E(r) 4.96% Stdev 0.98%.
Please find attached Excel file for the help on your posting. There are two sheets.
1. Max Return - Maximizing returns for a target ...
This posting helps with portfolio optimizations. The solution describes how to arrive at optimal asset portfolio using linear programming/Excel Solver in the attachment. It contains mathematical formulation also. The explanation is given in 102 words.