Portfolio Optimization

Portfolio optimization is the process of selecting the best mix of investments to achieve the highest returns for a given level of risk. It involves balancing different assets—such as stocks, bonds, and cash—so that when combined, they minimize the risk of loss while maximizing potential gains. By analyzing historical performance and correlations among assets, investors can create a diversified portfolio that can withstand market fluctuations. The ultimate goal is to make informed decisions that align with the investor's financial goals and risk tolerance.