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On successful completion of the module, students should be able to:
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Estimate expected returns and risk for individual assets and portfolios of individual assets.
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Illustrate the difference between the minimum variance frontier and the efficient frontier.
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Develop algebraically, expressions for expected return, variance of return, and covariance among returns using the Single and Multi-Index Models
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Solve for the optimal portfolio using the Markowitz Method.
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Develop expressions for the expected return on a stock using the CAPM and APT Pricing Models.
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Outline the differences and similarities between the Capital Market Line (CML) and the Security Market Line (SML).
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Evaluate the core empirical tests related to the CAPM and APT.
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Evaluate portfolio performance using Sharpe, Jensen, and Treynor ratios
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