Portfolio Suggestion is the extension of Portfolio Optimization module that goes a little further to provide you with more than one educated option to create efficient portfolios. It enables the evaluation of the efficient frontier for several investing strategies from the very conservative with no equity replacement to the very open which may include complete rebalancing of your existing holdings. The process goes through the following 7 steps:
1. Construction of the covariance and correlation matrixes
2. Estimation of the expected returns
3. Evaluation of historical volatility
4. Building of the efficient frontier
5. Running simulations to find an alternative mix if model portfolio
6. Generating output for all specified optimization strategies
7. Picking one portfolio from the frontier for your specified risk level, strategy, and preferred model.
 

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