This study session introduces the concept of a portfolio approach to investments. The needs of individual and institutional investors are each examined, along with the range of available investment solutions. The three main steps in the portfolio management process (planning, execution, and feedback) are outlined. Common measures of portfolio risk and return and the introduction of modern portfolio the- ory—a quantitative framework for asset pricing and portfolio selection—then follow.
Reading 38 Portfolio Management: An Overview
Reading 39 Portfolio Risk and Return: Part I
Reading 40 Portfolio Risk and Return: Part II
STUDY SESSION 13 Portfolio Management (2)
This study session introduces the portfolio planning and construction process, including the development of an investment policy statement (IPS). A discussion of risk management, including the various types and measures of risk, follows, and a risk management framework is provided. The session concludes with coverage on how financial technology (fintech) is impacting areas within the investment industry, such as investment analysis, automated advice, and risk management.
Reading 41 Basics of Portfolio Planning and Construction