General Stock Investment Strategies/stock analysis


Given a certain amount of US stocks (20), with their related volatilities, how can i "mix" the stock percentages that would reduce the volatility yet maintain higher than average returns?

Dr Len

Hi Len,

You would need to run the data through an optimization model that at a minimum includes the returns, the volatilities as well as the correlation data. You might be able to do this in excel.  You could also Google optimization models to find one that allows you to enter data.

I hope this helps.


General Stock Investment Strategies

All Answers

Answers by Expert:

Ask Experts


Michael Weiss, CFA


I can answer most questions about stock investment strategies, especially those related to value and growth


I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:

CFA Institute and CFA Society of Philadelphia


M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York Baccalaureate Program.

©2016 All rights reserved.