Portfolio Management

The aim of this course is to introduce the tools of modern finance in the context of investment management in practice. The focus will primarily be on the analysis and behavior of portfolios. This is not an individual stock selection course.

We examine both the data and the theory to develop analytical-investment and portfolio-management tools. We consider several models of the risk-return relation and work to understand how various financial instruments and investment strategies slice and dice risk and return. Topics covered include optimal portfolio selection and asset allocation, fundamental asset pricing models, market efficiency, behavioral finance, performance evaluation, mutual funds, exchange-traded funds (ETFs), and hedge funds.

The course is designed to provide a deep understanding of investment returns and real-life portfolio-management processes coupled with a strong quantitative focus that develops analytical tools and spreadsheet-modeling techniques. The format of the course is a combination of lectures and case studies.