Tuesday, July 05, 2005

Portfolio theory

Spent a good chunk of time studying for the CFA. I started learning session 12, which is on portfolio management, because I was very interested in learning about Markowitz MPT (modern portfolio theory). The lesson deals with acronyms such as MPT, CAPM, SML, CML, etc. The basic idea is that the expected return of a security is related not to the total risk of a security, but only to the systematic risk (market risk).

I am done with 2 study sessions (out of a total of 18). Still long ways to go.

next up: study session 13, which is on asset valulation - securities markets. Seems easy, not too much theory, just a lot of information.


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