Management. Analysis. Allocation.
In this gradute level course you will learn how to better manage client portfolios, become familiar with asset alternatives and portfolio analysis methods.
The course is divided into six parts:
- Asset allocation choices
- Developments in investment theory
- Financial statements and security valuation
- Stock and bond analysis
- Derivatives
- Management evaluation
The course material covers the following:
The Investment Setting
- Measures of Return & Risk
- Determinants of Required Rates of Return
- Risk and Return Relationship
Allocation Decision
- Individual Investor Life Cycle
- Portfolio Management Process
- Need for a Policy Statement
- Policy Statement Input
- Constructing the Policy Statement
- Importance of Asset Allocation
Global Selection
- Case for Global Investments
- Global Investment Choices
- Historical Risk-Returns
Securities Markets
- Primary and Secondary Capital Markets
- Secondary Capital Markets
- U.S. Secondary Equity Markets
- Analysis of Exchange Markets
Security-Market Indexes
- Uses of Security-Market Indexes
- Differentiating Constructing Factors Stock-Market Indexes
- Composite Stock-Bond Indexes
- Comparisons of Indexes Over Time
Efficient Capital Markets
- Why Capital Markets Should be Efficient
- Alternative Efficient Market Hypothesis
- Tests and Results of Efficient Market Hypothesis and Behavioral Finance
- Implications of Efficient Capital Markets
Portfolio Management
- Background Assumptions
- Markowitz Portfolio Theory
Asset Pricing Models
- Capital Market Theory
- Capital Asset Pricing Model (CAPM)
- Relaxing Assumptions
- Additional Empirical Tests of CAPM
- Market Portfolio: Theory vs. Practice
- Multifactor Models
- Arbitrage Pricing Theory
- Risk Estimation
Financial Statement Analysis
- Major Financial Statements
- Analysis and Computation of Ratios
- Evaluating Internal Liquidity
- Evaluating Operating Performance
- Analysis of Growth and Risk Potential
- Comparative Analysis of Ratios
- Non-U.S. Financial Statements
- Quality of Statements
- Value of Financial Analysis
- Specific Uses of Ratios
Security Valuation
- Valuation Process Overview
- Why a Three-Step Process
- Valuation Theory
- Alternative Investment Valuations
- Relative Valuation Techniques
- Required Rate of Return
- Expected Growth Rate: Valuation Variables
Macroanalysis
- Components of Market Analysis
- Microevaluation Analysis
- Using the Earnings Multiplier Approach
- Estimating Expected Earnings per Share
- Estimating Market Earnings Multiplier
- Microevaluation of World Markets
Industry Analysis
- Relevance of Industry Analysis
- Business Cycle and Industry Sectors
- Structural Economic Changes
- Alternative Industries
- Evaluating Industry Life Cycle
- Analysis of Industry Competition
- Estimating Industry Rates of Return
- Relative Valuation Approach
- Other Valuation Ratios
Company Analysis
- Company Analysis vs. Stock Analysis
- Economic, Industry and Structural Links Estimating Intrinsic Value
- Estimating Company EPS
- Estimating Company Earnings Multipliers
- Additional Measures of Relative Value
- Analysis of Growth Companies
- Measures of Value Added
- Site Visits
- Art of the Interview
- When to Sell
- Influences on Analysis
Technical Analysis
- Underlying Assumptions
- Advantages and Challenges
- Technical Trading Rules and Indicators
- Technical Analysis of Foreign Markets
- Technical Analysis of Bond Markets
Portfolio Strategies
- Passive vs. Active Management
- Passive Management Strategies
- Active Management Strategies
- Value vs. Growth Investing
- Asset Allocation Strategies
Bond Fundamentals
- Basic Bond Features
- Alternative Bond Issues
- Obtaining Information on Bond Prices
Bond Analysis
- Fundamentals of Bond Valuation
- Computing Yields
- Calculating Future Prices
- Bond Valuation Using Spot Rates
- What Determines Interest Rates
- Forward Rates from Spot-Rate Curve
- Term-Structure Theories
- What Determines Price Volatility
- Yield Spreads with Imbedded Options
Bond Strategies
- Bond Portfolio Performance
- Style and Strategy
- Active and Passive Strategies
- Core-Plus Strategies
- Matched Funding Strategies
- Contingent and Structured Strategies
Derivative Markets
- Overview of Derivative Markets
- Investing with Derivative Securities
- Forward and Option Contracts
- Use in Portfolio Management
Futures Contracts
- Forward & Futures Trading
- Hedging
- Basic Valuation Concepts
- Applications and Strategies
Option Contracts
- Option and Market Contracts
- Option Valuation Fundamentals
- Option Valuation: Extensions
- Advanced Topics
- Option Trading Strategies
Embedded Derivatives
- OTC Interest Rate Agreements
- Swap Contracting Extensions
- Warrants and Convertible Securities
- Other Embedded Derivatives
- Real Options
Alternatives and Ethics
- Asset Management Industry
- Structure and Evolution
- Private Management
- Advisory Firms
- Investment Company Structure
- Investing in Alternative Asset Classes
- Ethics and Regulation
Performance
- What is Required in a Portfolio Manager
- Early Performance Measurement
- Composite Portfolio Performance Measures
- Application of Performance Measures
- Factors that Affect Use of Measures
- Evaluation of Bond Portfolio Performance
- Reporting Investment Performance