C1: Investment Planning and Asset Management
This course aims to provide students with an understanding of risks and rewards of different types of securities and knowledge on applying risk diversification in portfolio management. Investment theories such as capital asset pricing model, efficient market hypothesis, parity conditions and investing planning will also be introduced.
Risk and Return
Calculation of potential return and risk of different securities.
Modern Portfolio Theory
Correlation and covariance of assets; efficient portfolios; portfolio diversification.
Asset Pricing Models
Capital asset pricing model; security market line; beta; multi-factor asset pricing model; application of portfolio diversification in financial planning.
Portfolio Investment Management
Efficient market hypothesis; portfolio management; performance evaluation; pooled investments; evaluation of investment performance in client's investment portfolio.
Derivatives and Alternative Investments
Futures; spot-futures parity; options; put-call parity.
Writing an investment policy statement; matching of client's goal and risk tolerance level in personal financial planning.