#fin-ed Markowitz Portfolio Optimization using Excel | Optimal Portfolio | two stocks | FIN-Ed In this video, using Microsoft Excel, I will show how to invest in an optimum portfolio, which will maximize the profit and minimize the risk. This concept is also known as efficient diversification in modern portfolio theory. I will recreate an Efficient Frontier with the tangent portfolio in excel using price information of two companies- Walmart Inc. and Intel Corporation. Let me ask you a few questions so you understand the essence of efficient diversification. If you have $1,000 to invest and have decided to invest in Walmart and intel stocks, how many stocks will you buy for each of the companies while not exceeding your $1,000 limit and at the same time constructing an optimum portfolio that maximizes your portfolio return and minimizes your portfolio risk? In this video, we will find the answer.