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What is Markowitz portfolio optimisation? +
A mathematical framework for constructing a portfolio that maximises expected return for a given level of risk, by finding the optimal weights on the efficient frontier. The tool computes the minimum variance portfolio and the tangency portfolio (max Sharpe ratio) automatically.
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What does the Data Vault provide? +
The Data Vault lets you download historical return series and covariance matrices for individual stocks listed on NSE India, NYSE, and Nasdaq. The data integrates directly with the portfolio and VaR tools, eliminating the need to source and clean data manually.
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How does the Option Pricing tool work? +
It supports both Black-Scholes analytical pricing and Monte Carlo simulation. You can explore option Greeks, visualise payoff diagrams, and run sensitivity analysis on volatility and time to expiry — covering everything in a standard derivatives module.
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What role does correlation play in diversification? +
Lower correlation between assets shifts the efficient frontier leftward. At ρ = −1, a specific weight combination can reduce portfolio risk to zero — the complete hedge. At ρ = +1, there is no diversification benefit. The Markowitz tool lets you explore this in real time.
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Is this suitable for a full MBA finance course? +
Yes — the seven tools cover the core quantitative topics across corporate finance, investments, and derivatives modules, with outputs suitable for classroom discussion and assignments. The Data Vault adds real-world data to any exercise.