Portfolio Optimization using Markowitz Model
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
Showcase this hands-on experience in an interview
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. This course's content is not intended to be investment advice and does not constitute an offer to perform any operations in the regulated or unregulated financial market.
Knowledge of risk-to-return metrics (Sharpe Ratio), standard distributions, Google Sheets (formulas such as IF, STDEV, VAR)
Skills you will develop
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:
Project overview and importing the data
Preparing data, calculating covariance and correlation
Calculating Sharpe ratio for two-asset portfolio
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
Reviews
TOP REVIEWS FROM PORTFOLIO OPTIMIZATION USING MARKOWITZ MODEL
This is a very good course for peoples. People can gain a lot of knowledge from this course...I loved doing this course....
A great introduction to the tools used to analyse the risk/reward of different types of assets.
This guided course help me to understand about the two asset diversification portfolio
Very informative things to enhance your knowledge and build your career in Finance
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