Portfolio Management

Course details

The program introduces the concept of a portfolio approach to investments. After discussing the investment needs of various types of inpidual and institutional investors, the course compares the types of pooled investment management products that are available investors. The following two readings cover portfolio risk and return measures and introduce modern portfolio theory and a quantitative framework for portfolio selection and asset pricing. The last subject focuses on the portfolio planning and construction process, including the development of an investment policy.

Objectives

Upon the completion of this course, the participant will be able to:

• Understand Portfolio management process
• List the differences between active and passive portfolio management
• List key elements of the capital asset pricing model identify the major theories of portfolio management, including the efficient markets hypothesis, persification and correlation, the efficient frontier, capital asset pricing model, and arbitrage pricing theory
• Discuss how persifying a portfolio can reduce its risk. Explain how risk and return vary for different combinations of assets, leading to the development of the efficient frontier
• Explain how specific risk differs from market risk, as postulated by the capital asset pricing model
• Use various risk measures to build a portfolio balancing risk and return
• Identify the advantages, benefits, and risks of global investing and investing in emerging markets
• Recognize key alternative investments
• Understand Sharpe’s ratio, Jenson’s ratio and Treynor’s ratio

Target Audience

Entry level treasury people; Entry and middle level traders; Executives in the area of investments,

Course Structure

• PowerPoint presentation, discussion, case study, excel assignments and quizzes
• The Workshop is designed to be highly interactive to ensure the highest level of audience involvement and participation
• The workshop material is carefully designed to be practical, and ready for immediate implementation.
• Case studies from the literature
• Additional research assignments shall be given to participants to address specific issues both on academic and practical basis and coming up with the conclusions that meet the learning objectives of the program.
• Assignments and research projects will be assigned to inpiduals and to teams to foster teamwork and collaboration among participants and break the barriers between units.

Program Content

• Module 1: Portfolio Management: An Overview
• Module 2: Portfolio Risk and Return: Part I
• Module 3: Portfolio Risk and Return: Part II
• Module 4: Basics of Portfolio Planning and Construction