Constructing the Capital Allocation Line in Excel (between Efficient Frontier and Risk-Free Asset)

The Capital Allocation Line is a tool that can be used to adjust a portfolio to a desired level of risk. The Capital Allocation line forms a tangent with the Efficient Frontier and incorporates a Risk-Free Asset. Any level of risk between the Risk-Free Rate and the Optimal Risk level of the riskier portfolio can be achieved. This tutorial takes you through the process step-by-step in Excel. Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=mt-inst-risk-mgt-27&utm_campaign=martyn-videos Follow Darwinex on LinkedIn: https://www.linkedin.com/company/tradeslide-ventures/ #CapitalAllocationLine, #CAL, #EfficientFrontier, #RiskFreeAsset, #RiskFreeRate, #AdjustingRisk, #ExpectedReturn, #StandardDeviationOfReturns, #Darwinex This is Episode 27 in the Darwinex 'Institutional-Grade Risk Management Techniques' Playlist: https://youtube.com/playlist?list=PLv-cA-4O3y979Ltr9wQ2lRJu1INve3RCM Video Contents: 00:00 Constructing the Capital Allocation Line 00:26 Why Darwinex? 01:21 What is the Capital Allocation Line? 04:42 Constructing the Capital Allocation Line in Excel 09:46 Using Excel Data Solver with the CAL 11:53 Summary and Next Episodes Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice. Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer