Portfolio Management

Portfolio Management in short lessons: risk and return, the efficient frontier, the CML and CAPM, performance measures, the IPS and asset allocation, behavioural biases and risk management, with worked examples and exam traps.

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  1. 01

    Portfolio Risk and Return: Part ILocked: included in All Access

    7 lessons · ~94 min6 videos 45 cards

    How investors trade off risk and return: the historical record of the major asset classes and their other characteristics, risk aversion and the utility function, indifference curves and the capital allocation line, the risk of two-asset and many-asset portfolios, diversification through low correlation, the minimum-variance and efficient frontiers, and how each investor's optimal portfolio is chosen.

  2. 02

    Portfolio Risk and Return: Part IILocked: included in All Access

    7 lessons · ~96 min7 videos 45 cards

    Capital market theory and the CAPM: combining the risk-free asset with the market portfolio (the CML, lending and borrowing), why only systematic risk earns a return, return-generating models and beta, the CAPM and the security market line, the Sharpe ratio, Treynor ratio, M² and Jensen's alpha, and how the CAPM is used for capital budgeting, security selection and portfolio construction.

  3. 03

    Portfolio Management: An OverviewLocked: included in All Access

    7 lessons · ~99 min1 video 45 cards

    The big picture of portfolio management: why investors should judge assets by what they do to the whole portfolio, the planning-execution-feedback process, what different individual and institutional investors need (including DC versus DB pension plans), how the asset management industry is organised, and how mutual funds compare with ETFs, separately managed accounts, hedge funds and private equity or venture capital funds.

  4. 04

    Basics of Portfolio Planning and ConstructionLocked: included in All Access

    7 lessons · ~95 min3 videos 45 cards

    How an adviser turns a client's goals and circumstances into a written investment policy statement (risk and return objectives plus constraints), and how that statement, combined with capital market expectations, becomes a strategic asset allocation and then a real portfolio, with ESG preferences built in along the way.

  5. 05

    The Behavioral Biases of IndividualsLocked: included in All Access

    7 lessons · ~95 min3 videos 44 cards

    Why real investors depart from the rational decision maker of traditional finance: the split between cognitive errors (faulty reasoning, which can be corrected) and emotional biases (feelings, which usually have to be accommodated), the fifteen named biases with their consequences and remedies, and how the same biases, added up across many investors, help explain market anomalies such as momentum, bubbles and crashes, and the value effect.

  6. 06

    Introduction to Risk ManagementLocked: included in All Access

    7 lessons · ~95 min2 videos 45 cards

    What risk management is (and is not), the framework and governance that support it, how risk tolerance and risk budgeting turn the board's appetite into limits, the financial and non-financial risks organisations and individuals face and how they compound each other, and the tools for measuring risk and modifying it through avoidance, self-insurance, insurance and derivatives.

Portfolio Management in short lessons · Academy · CheapMocks