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Goal Seek with two constraints
Hi,
I'm trying to create a 12 month portfolio return stream where I know the final return and I know the volatility. I want these two things, the return and the volatility, to be my constraints and then I want excel to randomly populate the 12M of data based upon that. I thought goal seek was the way to go, but there's no where to put a second constraint that I can see. Any suggestions? |
Goal Seek with two constraints
As you found, goal seek is designed to determine the value of one cell
based on existing formulas and optional user-specified constraints. What you're asking for is not only beyond goal seek's capability, but I believe any software's It's the "too many unknowns" issue. If you could specify 11 month's of data, and you could use goal seek to last unknown data point. What you might try here is to use the RAND() function to create 11 months of data first, then goal seek the the last month's. The trick here is that RAND() will recalc for each cycle of goal seek, making it an infinte loop. To get around this, set up as many RAND() formulas as you need to get your raw data, then copy those cells and do a "Paste - Special / Values" back onto their original positions. You'll then have a platform where Goal seek will work to determine the final cell's value to meet your criteria. I think. / Tyla / On Apr 19, 1:23 pm, Boom1 wrote: Hi, I'm trying to create a 12 month portfolio return stream where I know the final return and I know the volatility. I want these two things, the return and the volatility, to be my constraints and then I want excel to randomly populate the 12M of data based upon that. I thought goal seek was the way to go, but there's no where to put a second constraint that I can see. Any suggestions? |
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