Portfolio managers are responsible for selecting an investment strategy that suits the required risk and return objectives of the particular institution or individual.

US$42 per 365 days

 

What is Portfolio Management:

At the heart of portfolio management is the idea of getting the maximum return for a given level of risk. Rational investors will try to choose the most efficient portfolio (a combination of assets) for their level of risk tolerance – the portfolio providing the maximum expected return for a given level of variance, or standard deviation, of return.

How much of each asset to allocate in a portfolio, or which type of asset (stocks, bonds, real estate, and so on), is dependent on many factors, such as covariance between the assets and risk appetite of the investor. For instance, diversification of a portfolio by mixing a risky asset with a risk-free asset will reduce the overall risk of the portfolio, but the risk/return trade-off has to be examined. Higher levels of risk aversion will lead to a larger proportion of investment in the risk-free asset.

Today there are many different types of strategy, and portfolio managers may have to adjust a portfolio dynamically in response to changing market conditions.

Why it is important:

Portfolio managers are responsible for selecting an investment strategy that suits the required risk and return objectives of the particular institution or individual. A thorough understanding of portfolio management is necessary to maintain the balance between the performance of a portfolio and its risk.

Here are some questions you’ll find answers to in this course:

  • How do we select an optimal portfolio of assets?
  • How do we select the optimal combination of risky and risk-free assets in a portfolio?
  • What is the Capital Asset Pricing Model (CAPM), and how is it used?
  • How do we measure portfolio performance?

What will you learn:

  1. Measures of Risk and Return
  2. Diversification and Asset portfolios
  3. Large portfolio risk
  4. Efficient Portfolios
  5. The Capital asset pricing model
  6. Arbitrage pricing theory
  7. Performance evaluation metrics
  8. The Challenge of behavioral finance
  9. Adaptive market hypothesis

Target audience:

Recruits to institutions, risk managers, fund managers, portfolio managers, research staff, sales and marketing executives, operations and support staff looking to further their portfolio management knowledge, and compliance professionals.

Curriculum:

  1. Portfolio Management Measures of Risk and Return
  2. Portfolio Management Diversification and Asset Portfolio
  3. Portfolio Management Two-Asset Portfolio Risk
  4. Portfolio Management Large Portfolio Risk
  5. Portfolio Management Efficient Portfolios (Part 1)
  6. Portfolio Management Efficient Portfolios (Part 2)
  7. Portfolio Management Capital Asset Pricing Model (CAPM)
  8. Capital Asset Pricing Model (CAPM) Components
  9. Capital Asset Pricing Model (CAPM) Practical Considerations
  10. Capital Asset Pricing Model (CAPM) Real World Issues
  11. Arbitrage Pricing Theory (APT)
  12. Performance Evaluation Metrics
  13. The Challenge of Behavioral Finance
  14. Adaptive Markets Hypothesis

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