Mean-Variance Analysis of a Stock Portfolio
Maximising Expected returns for a given level of risk (volatility). The idea is to reduce risk by diversifying your stock portfolio.
- Your choice in Stocks
that's pretty much it.
- Expected Return $$ E(R_p) = ( \sum_{i}w_i*E(R_i)) $$
- Portfolio Variance σp^2 = ( \sum{i})(\sum_{j})w_iw_jσ_j*φ_j
A four stock Portfolio, NVDA, TSLA, NFLX, GOOG
Sharpe Ratio
9 Stock Portfolio
Correlation
Sharpe Ratio
