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Creating New Asset Portfolio

Submitted by marcosgoodrich@... on 7 March 2011 - 10:51am

Choose, for instance, AssetBuilder's Portfolio 8, with 12 different fund holdings (ideally I could import the information into ESP, but that's another story). I have to enter three different bits of information for each fund in the portfolio.

I can look up the individual funds on Yahoo, or Google Fin, etc.

1. I can find nominal returns for various time periods; am I correct in choosing the longest possible period?

2. ESP requires entering the funds' "variance vs large caps." Is this the same thing as R-squared? If not, how do I calculate or find this variance?

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Submitted by Dick Munroe on 8 March 2011 - 9:26am.
1

1. Yes.

2. See Care and feeding of UDAs in the FAQ for how to get the right numbers created in ESPlanner.

Now that we've upgraded the site to Drupal 6, I'll be deploying the User Defined Asset module in this site as well.

Best,

Dick Munroe

Submitted by marcosgoodrich@... on 8 March 2011 - 10:34am.
2

Thanks for the reply, Dick. If I understand correctly, I have to leave my paid-subscription account, go to the free version of ESPlanner, enter all the information for the example portfolio I mentioned, then export it somehow back to my paid subscription account, and then run the monte carlo?

But all I need to enter is the nominal rate of return for the various funds (in the free version)?

Submitted by Joseph Stokes on 7 August 2011 - 11:33am.
3

I am trying to use the Excel spreadsheet available in the FAQs under 'How Do I Create Custom Assets In Monte Carlo" to calculate relative variance and Beta for a mutual fund asset to go into a Monte Carlo portfolio. Annual nominal returns for each of the last 10 years are available from Morningstar. The instructions on the spreadsheet say to leave any year blank for which nominal return information is not available. However, if I blank out any year prior to the most recent ten in the nominal return column of the spreadsheet, it will not calculate values (the dreaded #VALUE appears). What do you recommend? If I leave the existing data in the cells for earlier years, or I change each cell to zero, isn't that going to distort the calculation?

Submitted by Dick Munroe on 8 August 2011 - 9:10am.
4

You can use the Asset Module tool available from your account at www.esplanner.com. The spreadsheet isn't being maintained to the best of my knowledge.

Best,

Dick Munroe

Submitted by Joseph Stokes on 8 August 2011 - 6:56pm.
5

Seems like my first attempt to enter a reply did not take. Apologies if this is a duplicate.

If the spreadsheet is not being maintained, would it not be a good idea to update the FAQs to remove mention of and access to the spreadsheet?

Submitted by Dick Munroe on 11 August 2011 - 9:46am.
6

Probably, but I don't maintain the FAQ or the spreadsheet.

Best,

Dick Munroe

Submitted by Joseph Stokes on 12 August 2011 - 8:56am.
7

How about being a good citizen and forwarding this issue to the people who do maintain the FAQs and the spreadsheet? That would be helpful to all of us.

Submitted by Dick Munroe on 12 August 2011 - 12:52pm.
8

Presumably they are reading the same postings I am, so hopefully they'll get the message and do the right thing.

Best,

Dick Munroe

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