Here we are looking at how to outperform the S&P 500, despite its 22% annualized return over the last two years, by using Modern Portfolio Theory. You will see how the Sharpe Ratio is a metric that allows us to compare two different strategies in light of returns, but also the very important risk element. Yes, I can also beat the returns of the S&P500 by playing 10 hands of blackjack, assuming things go my way, but what risks would I be taking in order to "win"? The risk management aspects is where we really push past the S&P500. You will learn: * how to calculate the risk on a two asset portfolio * how often Modern Portfolio Theory (MPT) has been able to outperform the S&P500 * How to find superior assets using MPT that allow us to outperform the S&P500. * How to write prompts in AI in order to eventually be able to have future AI do this analysis - sorry everyone - the free version of Gemini 2.5 cannot come close to doing what will will cover today. Perhaps financial lobbies have made a deal with AI firms to limit the ability to do financial analysis, I'm not sure. But at the time of this posting, LLM's I have tried, cannot access the data we need or provide the outputs we need. Maybe in the future, fingers crossed. Until then, Excel or Python are the best methods for this. So here is how you can learn more or use the quarterly models I publish each quarter... ————————- Our products on Portfolio Management: If you go to the website for Premier Study and Investing (link below) you can download a free excel sheet for portfolio management. This is a simplified version that considers 27 ETF's covering all 11 sectors, the S&P500, VTI, gold, and more using prices from Q3 2023. This is free so you can learn how Solver works in Excel. If you like using this approach, you can get up-to-date models with recent prices. Currently, access to a simplified portfolio model and future quarterly models is $5.00 per month at: https://www.patreon.com/user?u=89855564 To learn the Modern Portfolio Theory see our full course that would allow you to add in extra specific stocks or specific ETF's into a portfolio, consider taking the full course. Find it at https://www.premierstudyandinvesting.com/how-to-make-a-stock-portfolio/