Investment and Portfolio Analysis

Portfolio Theory - Part 2 (2021)



This eCourse consists of three modules. Module 1 covers the fundamentals of investment and the associated concepts of risk and return.

Module 2 shows how investors can pick the combination of expected return and risk (variance/standard deviation) that best matches their risk preference.

Module 3 explains in detail the characteristics of an efficient market, describing the random walk theory and examining the different forms of the efficient market hypothesis and their various implications for analysts, management, and investors. It also discusses the concept of adaptive market hypothesis and why it is becoming a popular alternative to EMH.


On completion of this eCourse, you will be able to:
- Define the concept of investment and identify the key motives for investment
- Recognise the different perspectives on, and approaches to, investment
- List the key characteristics of various asset classes
- Recognise the risk-return trade-off and the main risks to which investors are exposed
- Calculate the expected return for an individual security
- Calculate the risk of an individual security
- Recognise the concept of efficient markets
- Discuss the Random Walk Theory
- Identify the different levels of the EMH
- List the various implications of the EMH
- List the main research findings that either support or contradict the different levels of the EMH
- Recognise the concept of adaptive markets


Module 1: Investment - An Introduction
Topic 1: Investment Basics
Topic 2: Investment Perspectives & Approaches
Topic 3: Investable Assets
Topic 4: Investment Risk & Return

Module 2: Risk & Return - An Introduction
Topic 1: Calculating the Expected Return
Topic 2: Calculating Volatility (Risk)

Module 3: Efficient Markets
Topic 1: Efficient Market Hypothesis (EMH)
Topic 2: Market Efficiency: The Evidence
Topic 3: Adaptive Markets Hypothesis


Relevant Subject
Type 9 - Asset management
SFC:2.50, PWMA:2.50
All Member: HK$710
Staff of Corporate Member: HK$710
Non-Member: HK$1050