The DNRISK.lng Model

Scenario Based Portfolio Model

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In this model, we are attempting to come up with an optimal portfolio that meets a certain level of return while minimizing downside risk. Downside risk is a measure of the risk of falling below our target return. An additional feature of this model is it is scenario based. More specifically, we have seven scenarios that will each occur with a given probability. The model incorporates this distribution of predicted outcomes in deriving the optimal portfolio.


Accounting | Banking | Financial | Portfolio | Downside Risk | Stocks |