Patent ID: 7502756

Claim:
A method comprising determining a first return value for a first stock; determining a second return value for the first stock; determining a mean return value for the first stock based on averaging the first and second return values for the first stock; determining a first return value for a second stock; determining a second return value for the second stock; determining a mean return value for the second stock based on averaging the first and second return values for the second stock; determining a co-variance matrix and its inverse based on the first and second return values for the first stock, the mean return value for the first stock, the first and second return values for the second stock, and the mean return value for the second stock; determining by a computer weight factors for the first and second stocks, respectively, by multiplying the inverse co-variance matrix times the mean return values for the first and second stocks; and normalizing them by dividing them by their sum; specifying a first amount for purchasing of the first stock based on the first weight factor; and specifying a second amount for purchasing of the second stock based on the second weight factor.