Portfolio Management

About this course

Students learn how to use financial models (CAPM, APT) and portfolio valuation theories in financial decision making. Contents: The methods of calculating return on investment. Investment risk, risk premium and the cost of capital. The types of risks and their characteristics. The methods of determining and calculating investment risks. The diversification of risk and the performance of the investment portfolio. Modern risk management models. Theories of portfolio valuation and risk analysis. The capital assets pricing model (Capital Asset Pricing Model) and the theory of investment valuation (Asset Pricing Theory). Modern theories of portfolio valuation and risk analysis. The efficient market hypothesis, the importance of market efficiency for investment decisions, methods of estimation of market efficiency. Stages of investment portfolio management, the behavior of listed securities (variable, constant, procyclical). The defensive / aggressive and passive / active investment strategies.

Expected learning outcomes