Building on Portfolio Management I, this course explains in greater detail how to value fixed income and equity securities, and explains the roles of global investing, emerging markets, alternative investments, indexation, and style investing. It illustrates specific ways to analyze portfolios, including the Sharpe Ratio and performance attribution analysis.
This curriculum is made up of the following modules:
Assessing investor suitability for alternative investments
Duration : 1 hour
Birth of indexing
Advantages and disadvantages of indexing
Indexing techniques
Duration : 1 hour
What is style investing?
Style categories
Duration : 1 hour
Risk-adjusted measures
Performance attribution analysis
International performance standards
Apply the concept of discounted cash flow, or compound interest, to bond valuation
Recognize the significance of bond prices and how bond yields are calculated
Explore strategies for deciding what bonds to buy
Recognize how bond yield is linked to a benchmark
Identify the four theories that explain the shape of typical bond yield curves
Define volatility and identify the factors that affect it.
Identify duration strategies ﾗ (modified duration and convexity) and recall their benefits.
Identify the best bonds when calculating convexity.
Identify three dividend discount models
Calculate corporate value
List key elements of the Capital Asset Pricing Model Identify the major theories of portfolio management, including the Efficient Markets Hypothesis, Diversification and Correlation, the Efficient Frontier, Capital Asset Pricing Model, and Arbitrage Pricing Theory
Discuss how diversifying a portfolio can reduce its risk. Explain how risk and return vary for different combinations of assets, leading to the development of the efficient frontier.
Explain how specific risk differs from market risk, as postulated by the Capital Asset Pricing Model
Use various risk measures to build a portfolio balancing risk and return.
Identify the advantages, benefits, and risks of global investing and investing in emerging markets
Recognize key alternative investments
Describe the investor suitability criteria that a fund manager should consider before integrating alternative investments into a portfolio.
Explain the benefits and disadvantages of using index funds for the investor and the portfolio manager
Explain indexation techniques suitable for the passive investor
Compare the traits of top-down vs. bottom-up market segmentation
Identify the role of equity market expectations in earnings growth
Distinguish between value investing and growth investing
Identify yield curves corresponding to the relative performance of growth and value portfolios
Contrast stock and market traits that can influence style investing strategies
Explain the importance of risk adjustment when comparing one portfolio to another
Distinguish between Sharpe's ratio and Treynor's ratio
Discuss performance attribution analysis
Recognize the significance of Global Investment Performance Standards (GIPS)
Junior portfolio managers, money managers, research analysts, individual and institutional investors, private bankers and financial advisors, research staff of pension boards and plan sponsors.
