When an investor is faced with a portfolio choice problem, the number of possible assets and the various combinations and proportions in which each can be held can seem overwhelming. In this course, you鈥檒l learn the basic principles underlying optimal portfolio construction, diversification, and risk management. You鈥檒l start by acquiring the tools to characterize an investor鈥檚 risk and return trade-off. You will next analyze how a portfolio choice problem can be structured and learn how to solve for and implement the optimal portfolio solution. Finally, you will learn about the main pricing models for equilibrium asset prices. Learners will: 鈥� Develop risk and return measures for portfolio of assets 鈥� Understand the main insights from modern portfolio theory based on diversification 鈥� Describe and identify efficient portfolios that manage risk effectively 鈥� Solve for portfolio with the best risk-return trade-offs 鈥� Understand how risk preference drive optimal asset allocation decisions 鈥� Describe and use equilibrium asset pricing models.
Insight #1 from Capital Asset Pricing Model: Passive investing is efficient
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Skills You'll Learn
Risk Management, Mathematics, Portfolio Construction, Mathematical Theory & Analysis, Leadership and Management, Portfolio Optimization, Investment Management, Finance, Risk Analysis
Reviews
4.6 (605 ratings)
- 5 stars72.72%
- 4 stars20.49%
- 3 stars3.30%
- 2 stars1.48%
- 1 star1.98%
JC
Mar 3, 2020
I love how Dr O teach by telling a story. Her Teaching technique is different from the college boring classes that I have been.I wish she offer more courses.
FR
Jul 20, 2020
Dr. O really makes the idea of modern portfolio management clear! The practical assignments on Excel will really clear any confusion about the topics.
From the lesson
Module 5: Equilibrium asset pricing models
Taught By
Arzu Ozoguz
Finance Faculty