Efficient Portfolio
Efficient Portfolio
Efficient Portfolio is a unique smartphone app, which calculates the "efficient portfolio" of shares according to the theory of Nobel laureate Prof. Harry M. Markowitz and gives instructions, how to change a given portfolio to become efficient. The efficient portfolio is a portfolio that provides the greatest expected return for a given level of risk, or equivalently, the lowest risk for a given expected return, also called "optimal portfolio".
Caution: The model works right under the assumptions of the original theory:
- The investor is acting in a rational and risk-averse manner.
- Entry- and target values are quantified by expected values and standard deviation.
- Shares of the portfolio are arbitrarily divisible.
- The model does not account transaction costs.
- The model relates to a one period consideration.
- Changes in the fair values are normally distributed.
The model is intended for long-term investors (5 - 10 years). Refreshments of the portfolio (buy/sell shares) should carried out not more than one time a year, because transaction costs becomes eventually too high.
Free Data API: Alpha Vantage Inc., Boston, Mass., USA. Includes ticker data in USD from NYSE, NASDAQ and OTC.
Disclaimer:
SCIETREX Scientific Software AG expressly declines any responsibility with respect to damages done to individuals and things, which can ensue from the application of this software. The results of the calculations of this software are just to be counted as a risk analysis, where a residual risk remains, which the user must accept. In any case the user accepts his sole responsibility for the decision to buy/sell shares on stock exchange.
Version: 1.1.2
All rights reserved:
Before you can use this app, you have to create the portfolio database. If you are creating a portfolio database on a system with stored tickers, all existing tickers in the portfolio will be deleted!