Finance  |  Format: Flash

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.
    Catalog Number: 99FINCA03
    CPE Credits: 2 Registry / 2 QAS
    Author: Rich White
    Advanced Preparation:
    Basic knowledge of finance principles and practices
    Course Level: Basic
    Field of Study: Finance
    Content Partner: SmartPros Ltd.
    QAS: QAS Certified based on 50 minute hours.
    Course Type: Self-study
    Minimum Passing Grade: 70%
    Soft/Hardware Reqs.:  Adobe Acrobat® Reader for the .pdf files
     Adobe® Flash® Player 9 or higher
     56k or Greater Internet Connection
     Modern DHTML Compatible Browser
     Ram: 256 MB minimum
     Windows or Mac OS
    Release/Expiration Dates: May 13, 2015 / Dec 31, 2020