From the course: AI in Fintech Essential Training (2019)

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How roboadvising works

How roboadvising works

From the course: AI in Fintech Essential Training (2019)

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How roboadvising works

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- [Instructor] To help you better understand what Robo advising is and how it works, I've gone through and created a Robo advisor for you here in Excel. Let's go through and see how this process works, shall we? I'm in the 0302 begin Excel file. Now this is a simple questionnaire and we're going to go through and just fill this out. And the Excel sheet, the Robo advisor that I've created, will generate a portfolio for us based on these responses. So to begin with, let's just pretend we've got a hypothetical person. All right, and we're going to go through and fill this out for that particular individual. So what's the individual's age? We'll say it's 35 years old. Now, we want to know something about the risk tolerance here. If the portfolio stocks that the investor has invested in lost half its value, what would that individual do? Would they sell and panic? Would they sell and panic just a little bit? Do nothing and wait…

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