Financial Markets

Modern Portfolio Theory and Stock Market Valuation Techniques

Course Overview:
In this course, the development and adoption of modern portfolio theory (MPT) is described including expected return, standard deviation of returns as a measure of risk, the Capital Markets Line, the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). The tools of MPT are widely used in today’s investment world to evaluate and select portfolio managers, mutual funds, and hedge funds. These tools have created standards for comparing performance and risk across different markets and investment styles. Most importantly, they have helped investors appreciate and implement the benefits of diversification as a risk-management tool.

Learning Objectives:

After completing this course, participants should be able to:
  • Identify the characteristics of an efficient market.
  • Identify the appropriate number of securities an investor should hold in order to achieve optimal diversification.
  • Differentiate between systematic and nonsystematic risk.
  • Recognize the use of standard deviation and beta with respect to a security.
  • Identify a portfolio that has achieved an efficient frontier.
  • Recognize how the coefficient of determination is used with respect to a security.
  • Calculate the P/E ratio.

  • Prerequisites/Advanced Preparation:

    Basic knowledge of finance principles and practices

    Speaker / Author:

    Rich White is a financial writer and editor with over 25 years of experience in the financial services industry. Mr. White graduated from Vanderbilt University in 1972 with a B.A. degree, major in English, and has held Series 7 and 63 licenses.

    His areas of special interest include financial planning and retirement plans, annuities, equities, fixed income securities, mutual funds, insurance products, seminar selling, retirement analysis and illustrations, prospecting skills and tax-efficient investing. He writes a regular column and weekly blog for the advisor Website BenefitsPro.

    Among the clients Mr. White has served are: American Express Financial Advisors, AXA Financial, the Bond Marketing Association, Chase Manhattan Bank, Citibank, the Closed-End Bond Fund Association, Conseco, Coregis, Dime Savings Bank, Evergreen Funds, First Union National Bank, Fleet Boston Financial Corp., Frank Russell Company, GE Capital, Guardian, Invesco, J. & W. Seligman, MacKenzie Financial Services, MetLife, Orbitex Capital, Prudential Financial, Nathan & Lewis Securities, National Life of Vermont, SEI Investments, Sentinel Funds, TIAA-CREF, William Blair Funds, and Van Eck Funds.

    Mr. White is the author of two books written for financial advisors: 12 Steps to Your Personal Success in 401(k)s and Small Business Retirement Plans and How to Find and Keep High Net Worth Clients. Both books were published in 2001.

    Mr. White has written the training courses used by the Canadian Association of Independent Financial Advisors (CAIFA) on financial planning, mutual funds and investment markets. He also has worked as editor of professional newsletters published by the former Investors Press: 401(k) ALERT and Variable Products ALERT.

    From 1977 to 1981, Mr. White worked as the first full-time Editor-in-Chief of Financial Planning magazine, the monthly trade journal then owned by the International Association of Financial Planning (IAFP).


    Price (USD)

    Standard: $49.90


    Course Code : 99FINCA03

    Release Date : 05/13/2015
    Expire Date : 03/31/2023
    Credits :
    CPE 2.00
    QAS 2.00

    Course Level : Basic
    Course Type : New Standards
    Length : 1hr 40min
    Passing Grade : 70%
    Field Of Study : Finance
    Theme : Financial Markets

    Format Type : eLearning
    Mobile Compatible

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