I want to know how to use excel to do total variance calculation for a portfolio of assets
2006-07-23 01:48:55 · 0 answers · asked by klu70s 1 in Business & Finance ➔ Investing
chkmstra is correct. you need to consider the weights.
2006-07-23 04:00:23 · answer #1 · answered by RMC 2 · 0⤊ 0⤋
Variance Excel
2016-11-12 01:28:51 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The previous answer assumes that you have equal weights (amount invested in each stock in your portfolio.) If you have different weights invested in your portfolio, you'll have to create a new column. In this new column have this: weight of the stock (percentage of money on that stock) times the variance of that stock. Then just add up that column.. That'll give you the portfolio variance.
Var = Sum (weights * Var of Each Stock)
2006-07-23 02:53:39 · answer #3 · answered by chkmstra 1 · 0⤊ 0⤋
You want the VAR function.
Example: Column A contains the following:
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
The formula is : =VAR (A1: A20)
The result is 0.0875
2006-07-23 02:13:26 · answer #4 · answered by qwertykph 4 · 0⤊ 0⤋