I have found this forum on google and it sounds like a lot of people who are knowledgeable…
I am creating a portfolio perfomance forecast for a group of portfolio I would like to present but it is turning into a nightmare.
- I found data. I have calculated the change, and thus expected return and standard deviation for each stock (7 of them)
- I then create a variance/covariance matrix.
- I give the weight to each stock in each portfolio and then i calculate expected return and expected standard deviation for each portfolio given specific weight using mmult and transpose formulas
- until then i assume everything is ok but then I read on a company’s website they adjust their portfolio for risk premium and risk free rate and credit spreads and rent level. At this point I get lost because i dont know who to go about it.
Note: I used montecarlo simulation for the graphical part.
Is there anyone who can help me?
Thanks a lot