I have a question regarding efficient portfolio. is there a website or a book that details how to construct this in excel. i have read benninga, but i don't understand the use of arbitrary value of c. if someone can give me an intuitive explanation of that, that would be great. also, are there any other resources available either online or books where people have tweaked the assumptions and come up with a somewhat modifiend version of the efficient frontier. any help will be much appreciated. thanks so much.anish

I create efficient frontiers often using R. The function portfolio.optim() in the package tseries is useful.Consider you have a:Matrix of returns (in this example they are daily) called intlEqVector of holding constraints called max and minr<-NULLtemp<-NULLr<-seq(.00046,.00052,.000001)return<-NULLrisk<-NULLfor(z in 1:length(r)){temp<-portfolio.optim(intlEq,pm=r[z],reshigh=max,reslow=min)return[z]<-(1+temp$pm)^250-1risk[z]<-(temp$ps*sqrt(250))}ef<-data.frame(return,risk) postscript(file="~/intlEq.ps")par(col="blue",cex.main=1.5,cex.lab=1.2,cex.axis=1.2)plot(y=return,x=risk,xlab="Annualized Risk",ylab="Annualized Return",main="10 Yr Historical Efficient Frontier",type="l")dev.off()

http://www.spreadsheetmodeling.com/Port ... s.htmmight help.if you know how to use excel solver then this shouldn't be difficult.

Here are some simple examples provided by Simon Hubbert at Birkbeck

Thank you all for your help. Time for me to implement these one by one. thanks again.