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Setting Up the Inputs

Help for setting up the inputs in the portfolio optimization template for Excel

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Business Spreadsheets User Guides: Project Planning and Management Multiple Regression Analysis and Forecasting Investment and Business Valuation Real Options Valuation Portfolio Optimization Portfolio Performance Tracking Customer Invoicing
Portfolio Optimization Help Topics: Setting Up the Inputs Running the Optimization Process Analyzing and Utilizing the Results Applications to Business Portfolios

The first step is to input the required data into the Input sheet or download financial security data using the separate template provided. Additional input options are:

  1. Business Streams. When applying the model to a portfolio of businesses, the historical economic profit or return of each business unit should be entered here. Because the model assumes that each business is independent, effort should be made to allocate overhead costs to each business as much as possible.  This can be accomplished through methods such as Value Stream Mapping.
  2. Financial Market Data. To assist with the automatic download of publicly listed market security data, Business Spreadsheets has developed a free and open source template (included in the portfolio optimization download) which can download this data automatically at daily, weekly or monthly frequencies. The format of this template is identical to the portfolio optimization 'Input' sheet so that downloaded data can be automatically copied and pasted in.

Screenshot: Setting Up the Inputs