Financial Markets

Modern Portfolio Theory and Stock Market Valuation Techniques v1.1

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.

IMPORTANT: This course, previously titled "Modern Portfolio Theory and Stock Market Valuation Techniques" has been republished in our current course platform. Please be aware that the content is the same, with only minor updates. If you have already received credit for this course, you cannot receive credit again.

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:

Richard A. White
Richard A. White, CMA, CFM, CPA, CIA, CFP, CFE, is president of Richard Allan White & Associates, Inc., in Oviedo, Fla., and a member of IMA’s Mid-Florida Chapter. You can contact Richard at (407) 366-6183 or rich@richardawhite.com.

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Price (USD)

Standard: $49.90

Details

Course Code : 99FINCA03A

Release Date : 04/27/2023
Expire Date : 03/31/2025
Credits :
CPE 2.00
QAS 2.00

Length : 1hr 40min
Course Level : Basic
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Finance

Theme : Financial Markets

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