About this Lecture

This lecture instructs IMAC candidates on the theoretical and empirical underpinnings of portfolio management, specifically in relation to how portfolios are designed and measured including:

• the foundations of portfolio construction and portfolio analysis;
• various interpretations of risk in the financial context;
• investment returns, risk aversion and the normal distribution;
• the Equity Risk Premium, its use, limitations, and evolution over time;
• characteristics of risky and risk-free assets;
• the capital allocation line, how to draw it and how to calculate its gradient;
• the security market line and...