the Pragmatic Investor

[marc s]

HI Don, Aptus

Through my own feeble efforts plus others with greater insight

The spreadsheet for this stock allocation system based on standard deviation is

Column A correlation coefficent
column B standard deviation. The sum of column b is called S
column c is S/standard Deviation The sum of column c is called T
Column D is Column c individual values divided by T
Column E is individual shares initial buy price
Column f is called target $. It is column D individual value times initial bankroll or aka Money to be invested
Column G Shares to purchase it is column D times Money divided by column e value.

The purpose of the correlation coefficent is unknown as it reflects on the values in the spread sheet

refer to aim users bulletin board post #15057 for fuller explanation.