Excel for Investment Professionals

Leverage Excel to make sound investments. Learn how to perform key investment-related activities in Excel, including investment evaluation and analysis on a stock or portfolio.

Introduction

• Using Excel to make sound investments
• What you should know

1. Major Tasks in the Investments Industry

• Reviewing basic principles
• Reviewing asset allocation
• Reviewing beta
• Reviewing multiples and stock valuation
• Reviewing smart beta

2. Single Stock Investment Analysis

• Setting up time series data on a stock
• Computing holding period returns
• Computing time series momentum: Market timing
• Compute rolling P/E and P/B multiples for a stock
• Building a discounted cash flow model
• Building a dividend discount model

3. Investment Evaluation in Excel

• Computing expected returns on a stock
• Using probability to calculate stock returns
• Computing arithmetic and geometric returns in a portfolio
• Computing standard deviation and variance of an asset
• Finding covariances and correlations
• Computing standard deviation and variance of a portfolio
• Computing beta of an asset
• Computing risk for a portfolio with many stocks

4. Investment Evaluation in Excel

• Computing asset allocation
• Computing cross-sectional momentum
• Computing correlations between stocks
• Evaluating hedge funds and mutual funds with portfolio attribution
• Valuing a bond in Excel
• Performing scenario analysis

5. Portfolio Performance Evaluation

• Setting up allocations
• Scenario analysis in a portfolio
• Computing expected risk on a portfolio
• Computing portfolio Sharpe ratios
• Computing information ratios
• Computing Sortino ratios
• Calculating Treynor measures
• Calculating VaR

Conclusion

• Next steps