DF_PORT_OPT imports security
time series data from Yahoo or a database, plots it, and then computes the
efficient frontier of a portfolio made up of the securities.
Selecting Data Inport Method
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Pull down the File menu, select Preferences, then Data Source.
Once inside Data Source, select either Datafeed or Database.
Importing Time Series Data
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Type the symbols of securities you wish to use in the editable text
box, labeled "Enter Symbols Separated by Commas." Enter as many
securities as you wish. Symbols need to be separated by commas.
Example:
ibm,msft,csco
If using the Datafeed option:
Select a starting date for the time series to be imported. If on a PC, an
ActiveX calendar may be brought up to view and select a date. The time series
ends with the yesterday's closing price.
If using the Database option:
Use the "Select Data" window to select the Data Source and fields from the
database. Clicking the "Apply" button will send the Date and Asset choices
for importing.
The database option does not allow setting the startdate. Also, database set
up to work with this tool is DFDBsample. The time series date range stored in
DFDBsample is from January 2, 1997 to December 8, 2000.
To import the time series data and plot it, press the button labeled,
"Get Time Series."
To Scale the time series data to one, select the checkbox labelled "Scale
Time Series."
Plotting Efficient Frontier
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Press the button, "Generate Frontier." Make sure that the data has
been loaded before attempting to generate the frontier.
Find the Security Distribution Given a Desired Rate of Return
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Enter the desired rate of return or desired risk in the appropriate editable
text box. The number entered needs to be within the upper and lower bounds
shown in red. The fraction of each security in your portfolio needed to reach
the desired rate of return or risk will then be shown underneath. This can
also be done graphically by dragging the green lines along the efficient
frontier.
Toolboxes Needed: Financial, Optimization, Database, Datafeed
