Portfolio Theory - Part 4

Portfolio Theory - Part 4

Overview

This tutorial describes the common strategies in portfolio management, i.e. buy-and-hold, indexing and market timing strategies, and how these techniques are applied. The course then moves on to elaborates the various ratios or means in measuring the performance of the portfolio.

Objective

On completion of this tutorial, you will be able to:

- Understand the buy-and-hold and indexing strategies adopted by passive investment managers
- Describe how a market timing strategy differs from an indexing strategy
- Explain what techniques are used in active portfolio management
- Calculate the Sharpe ratio and use it as a means of comparing alternative investments
- Calculate the Treynor ratio and explain how it differs to the Sharpe ratio
- Compare Jensen's alpha measure with both the Sharpe and Treynor ratios
- Describe the Treynor-Black ratio and the RAROC measure

Content

Module 1: Portfolio Management - Passive & Active Strategies

Topic 1: Passive Investment Management
Topic 2: Active Portfolio Management
Topic 3: Active Portfolio Management – Techniques


Module 2: Portfolio Theory - Performance Measurement Models

Topic 1: The Sharpe Ratio
Topic 2: The Treynor Ratio
Topic 3: Jensen’s Alpha
Topic 4: Other Performance Measures

Details

Code
TEBIP17001001
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:3.0, PWMA:3.0
Fees
All Member: HK$840
Non-Member: HK$1170
Staff of Corporate Member: HK$840