Portfolio Optimization using Markowitz Model

4.3
stars
27 ratings
7 reviews
Offered By
Rhyme
In this Guided Project, you will:

Calculate covariance and correlation of two assets

Calculate variance and Sharpe ratio for two-asset portfolio

Use Markowitz model to optimize for the highest Sharpe ratio in two-asset portfolio

Understand what the efficient frontier is and how it is applied in portfolio management

Clock3 hours
IntermediateIntermediate
CloudNo download needed
VideoSplit-screen video
Comment DotsEnglish
LaptopDesktop only

In this 1-hour long project-based course, you will learn how to optimize a two-asset portfolio at the optimum risk-to-return with finding the maximum Sharpe ratio. To achieve this, we will be working around the Sharpe ratios of two given assets, we will find the efficient frontier of these assets, and find where they intersect the best by utilizing the Markowitz Model. The content of this course draws on the knowledge of Project: Compare Stock Returns with Google Sheets, so you are highly recommended to take it first if you are not familiar with how the Sharpe ratio is calculated and don’t have an understanding of how the risk-to-return metrics work. Note: This course works best for learners who are based in the North America region. We're currently working on providing the same experience in other regions.

Skills you will develop

Financial Data AnalysisCapital MarketQuantitative Analysis

Learn step-by-step

In a video that plays in a split-screen with your work area, your instructor will walk you through these steps:

  1. Project overview and importing the data

  2. Preparing data, calculating covariance and correlation

  3. Calculating Sharpe ratio for two-asset portfolio

  4. Graphing the results and discussing the outcomes

How Guided Projects work

Your workspace is a cloud desktop right in your browser, no download required

In a split-screen video, your instructor guides you step-by-step

Frequently asked questions

Frequently Asked Questions

  • By purchasing a Guided Project, you'll get everything you need to complete the Guided Project including access to a cloud desktop workspace through your web browser that contains the files and software you need to get started, plus step-by-step video instruction from a subject matter expert.

  • Because your workspace contains a cloud desktop that is sized for a laptop or desktop computer, Guided Projects are not available on your mobile device.

  • Guided Project instructors are subject matter experts who have experience in the skill, tool or domain of their project and are passionate about sharing their knowledge to impact millions of learners around the world.

  • You can download and keep any of your created files from the Guided Project. To do so, you can use the “File Browser” feature while you are accessing your cloud desktop.

  • Guided Projects are not eligible for refunds. See our full refund policy.

  • Financial aid is not available for Guided Projects.

  • Auditing is not available for Guided Projects.

  • At the top of the page, you can press on the experience level for this Guided Project to view any knowledge prerequisites. For every level of Guided Project, your instructor will walk you through step-by-step.

  • Yes, everything you need to complete your Guided Project will be available in a cloud desktop that is available in your browser.

  • You'll learn by doing through completing tasks in a split-screen environment directly in your browser. On the left side of the screen, you'll complete the task in your workspace. On the right side of the screen, you'll watch an instructor walk you through the project, step-by-step.

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