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.
Portfolio Optimization using Markowitz Model
Instructor: Bekhruzbek Ochilov, MCSI, PAGRC
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(311 reviews)
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What you'll learn
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
Skills you'll practice
Details to know
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About this Guided Project
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 (4 min)
Preparing data, calculating covariance and correlation (12 min)
Calculating Sharpe ratio for two-asset portfolio (10 min)
Graphing the results and discussing the outcomes (13 min)
Recommended experience
Knowledge of risk-to-return metrics (Sharpe Ratio), standard distributions, Google Sheets (formulas such as IF, STDEV, VAR)
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How you'll learn
Skill-based, hands-on learning
Practice new skills by completing job-related tasks.
Expert guidance
Follow along with pre-recorded videos from experts using a unique side-by-side interface.
No downloads or installation required
Access the tools and resources you need in a pre-configured cloud workspace.
Available only on desktop
This Guided Project is designed for laptops or desktop computers with a reliable Internet connection, not mobile devices.
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Reviewed on Jun 7, 2020
This guided course help me to understand about the two asset diversification portfolio
Reviewed on Jan 2, 2023
Easy and simple, gave me a useful insight to build a markowitz portfolio model on excel
Reviewed on May 9, 2020
Good foundation course for learning application of Markowitz Model. Kudos !
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Frequently asked questions
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.
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