THE PORTFOLIO DESIGNER: A basic tool to reduce the markets complexity and make a short list of assets to invest.  TARGET USERS:  Private Investors  Brokerage AXE,AXEΠΕΥ, ΑΕΠΕΥ  BANKS  FINANCIAL ORGANIZATIONS

MAIN OBJECTIVES  To result in to a short list and optimal allocation of assets to invest  To Design Hedging with Derivatives

BASIC FUNCTIONALITIES  Optimal Portfolio Selection  Hedge Designer  Historic Simulation

HUNAM-AND-COMPUTER INTERACTION PRINCIPLES OF QUALITY IN THE DESIGN OF THIS SOFTWARE  As few as possible menus and input-and out-put forms  As simple and friendly as possible, interface  As much as possible hidden automation  We keep it intelligent and as simple and self- evident as possible  Artificial Intelligence methods

INTERNAL STRUCTURE QUALITY OF THE PROGRAM  Full use of the most modern design and programming technology  Optimal internal structured programming for speed and real-time efficiency  Effective both on recent and less recent hardware  Full communication with Microsoft Office and other programs

MARKOVITZ THEORY OF PORTFOLIO’S RISK AND PROFIT  Classification comparison and preference of Portfolios based on risk and profit  Profit measures:Average Rate of Return  Risk measures:  Volatility  Elasticity  Combinations

PORTFOLIOS OF MAXIMUM PROBABILITY OF PROFIT  The cut-off-rate technique  The Sharp ratio of profit and risk  The Treynor ratio of profit and risk  Find the portfolio that has the maximum probability to result to a profit above a preset level

CONTSTRAINTS ON THE DESIGN OF PORTFOLIO BY THE USERS  Constraints on the number of assets  Constraints through short listing based on fundamentals  Constraints through short list based on news Analysis  Constraints through arbitrary short lists  Constraints by indexes

DEFENSIVE, OFFENSIVE AND NEUTRAL PORTFOLIOS  The elasticity of the portfolio relative to the general index  Less than 1: Defensive  More than 1: Offensive  Negative : Opposite to the Market  Positive: Parallel to the Market

NEUTRAL PORTFOLIOS DESIGNER  Find the Portfolio of zero elasticity relative to the market

HEDGING A PORTFOLIO WITH DERIVATIVES:HEDGING DESIGNER FOR HEDGE FUNDS  After choosing the elasticity, estimation of the required futures or options to hedge the portfolio (Delta neutral hedging )

RISK-AND-PROFIT PORTFOLIO FREE DESIGNER  The dependence and changes of risk and profit when the percentages change (for sub optimal design experimentation)  A matrix with arrows for sensitivity analysis experimentation

HISTORICAL PORTFOLIO SIMULATOR  Historical Simulator for testing the Portfolio in the past.  User defined transaction costs and Bid-Ask spreads costs

CRYSTALL-CLEAR PRINT OUTS OF ALL THE TABLES AND IMAGES  Print outs of all the out put tables of the program  The print outs admit export in Excel for user defined modifications

COMMUNICATION OF THIS PROGRAM WITH ITS ENVIRONMENT AND OTHER PROGRAMS  Exporting to Microsoft Office:  Excel  Access  Word  Etc.  Link and feed of data from other programs.

TECHNICAL SPECIFICATIONS  Software : Little space to store  Hardware:Runs in Pentiums 1,2,3,4  In Windows 98,NT etc  Communicates, if wanted, with the Internet

ADVANTAGES OF THIS PROGRAM  Advantages compared to other programs:  Supports Historic Simulation  Support Hedging with Derivatives  It is fast and simple to use