Inverse lower partial moments (ILPM) in portfolio management (Excel)

Inverse lower partial moments (ILPM) is a simple and powerful statistical concept that has numerous applications in finance when measuring downside risk. Today we are learning how to apply ILPM in Excel for optimal portfolio allocation.
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[@NEDLeducation]

You can find the spreadsheets for this video and some additional materials here:

[@Hayaku_0627]

Here to support!

[@MrMahankumar]

Hey man great!!!! This is a very important and innovative technique in Portfolio finance. Very hard to find even in finance books

[@joseluisguevarazapata435]

Hi, your videos are very good, could you show what a multi-currency portfolio would look like?

[@yousseflouraoui4330]

Amazing video as always! The content is so hard to find and not taught even at postgraduate courses of finance. Very clear explanations of the concept and the example for this model was intuitive!

[@theallrounder6701]

Thank you very much! How would I proceed if I want to calculate LPM0 with your spreadsheet? Thank you!

[@jasonwayne4647]

question： if the investor is extremely risk adverse， why the model doesn't allocate all the money into treasury bond，thx

[@marketx799]

Fantastic video, was looking for something like this, is there more ways to do it, like set expected rate of return and based on that build a portfolio

[@drek273]

does it matter if I use monthly return data as opposed to daily return data like you used?

[@lvelone]

I have a quiestion, sir. In the formula for LPM there is a 1/T, werent you supposed to divide by the number of observations ?

[@GurpreetKaur-yx7mk]

Hello Sir, can u please provide a video using GARCH-MIDAS in case we have data with different frequencies. It would be really helpful.