Example 2: Calculating Efficient Portfolios of Risky Assets

In Module 1, we will build the fundamentals of portfolio formation. After providing a brief refresher of basic investment concepts (our toolkit), a summary of historical patterns of stock returns and government securities in the U.S. is provided. We then consider general examples of portfolio choice to highlight the tradeoffs between “risk” and return. We end the module with a discussion of dominated assets and efficient portfolio formation, emphasizing real-world examples and practice in Excel solving for the optimal portfolio given certain constraints (such as the amount of volatility we will accept in our portfolio).

About Coursera

Courses, Specializations, and Online Degrees taught by top instructors from the world's best universities and educational institutions.

Join a community of 40 million learners from around the world
Earn a skill-based course certificate to apply your knowledge
Gain confidence in your skills and further your career