Course 08

Diversification and portfolio management

Building, monitoring and evaluating a portfolio

What you will learn

• Define a portfolio, and tell asset allocation apart from security selection.
• Understand the main asset classes and their features.
• Explain the role of diversification across assets, sectors, regions and currencies.
• Interpret correlation and understand its effect on overall risk.
• Link goals, horizon and the ability to bear losses to a portfolio policy.
• Understand rebalancing, costs, and the limits of passive and active management.
• Present a structured analysis of a portfolio without giving personal advice.

• 1. The portfolio and its goals
• 2. Asset allocation and asset classes
• 3. Diversification and correlation
• 4. Risk profile, horizon and constraints
• 5. Building, monitoring and rebalancing
• 6. Evaluation, costs and management styles

49 €