PORTFOLIO

The PORTFOLIO command is used to calculate risk return portfolios using Markowitz models

In general, the format is:

  PORTFOLIO / options


The available options on the PORTFOLIO command are:

Option Description
EQUALWEIGHT Specifies the portfolio contains equal weights for each asset.
GRAPHDATA Displays a scatterplot of the risks and returns for each of the stocks.
GRAPHFRONT Plots the minimum-variance risk-return frontier.
GRAPHLINE Adds a line on the frontier plot from the risk-free rate of interest to the tangency point on the risk-return frontier.
INRATES Specifies that the stock price data is in rates of return.
LIST Lists the rates of return on the SHAZAM output.
PFRONTIER Prints a listing of the minimum-variance risk-return frontier.
SHARES Specifies that the command line includes names of variables containing the corresponding number of shares for each stock price variable.
WEIGHTS Specifies that the command line includes names of variables containing the corresponding weights for each stock price variable. The weights are normalized to sum to unity.
INDEX= Specifies the name of a variable containing the price of a stock market index.
RETURNS= Specifies a variable for saving the portfolio returns for the risk-return frontier (200 values are saved), the mean returns for each stock and the returns listed in the EFFICIENT PORTFOLIOS table on the SHAZAM output.
RISKFREE= Specifies the risk-free rate of interest. It should be in percent.
RISKS= Specifies a variable for saving the portfolio standard deviations. See the RETURNS= option.

In addition, the BEG=, END= options are available. Also, the Also, the WIDE option as defined for the GRAPH command can be used.