Optimizing Portfolio in Excel
I have a set of opening stock data for which i have calculated the returns and the mean returns. I need to now create a covariance matrix which i do not understand how to do?
Can someone please help me on how i would generate the covariance matrix for the portfolio. I have attached my excel file containing the portfolio if any1 wants to see.
Re: Optimizing Portfolio in Excel
Ok i have managed to create the covariance matrix on excel. Unfortunately my next problem is to use the EXPONENTIAL UTILITY u(w)=1-e^-.05w to estimate the portfolio giving maximum expected utility. My spend is £1000.
How would i used the exponential utility to maximise the expected utility??
Also i need to justify the method chosen? what method?
Any help would be greatly appreciated. I have attached my new excel file.