A faster way to calculate portfolio risk, and remember it too | Financial Modeling Tutorial

A financial modeling tutorial on calculating portfolio risk using a bordered covariance matrix instead of formula notation for portfolio variance and portfolio standard deviation using Excel in Quant 101.

For the video transcript and Excel formulas see:

For the outline to the series see:

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01:18 - Outline
01:53 - Step 1 - The Problem with Portfolio Risk
03:30 - Step 2 - Calculate Portfolio Variance
12:05 - Step 3 - Derive Portfolio Standard Deviation
13:04 - Step 4 - Portfolio Risk and Rebalancing
15:34 - Step 5 - Next: Covariance matrix

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Happy Learning!

[WallaceRoseVincent]

I know this is off topic, but I would love to see some analysis on Sears. I think they have a lot of debt. Since rates are ticking up, it would be cool to see how the small increases in interest rates are squeezing Mr Lambert and company. Also, how much has he gained (or lost) from the purchase of Sears? In other words, can you do a bit of forensic analysis to see how much Mr Lambert profited over the years as Sears declined or has he's just lost money hand over fist? And is it too late make money shorting Sears?