Preview of Activities

Quiz

This assessment will count towards your individual participation grade

Session 8

Investing and Portfolio Management + Factor Investing

At the end of this week, you will be able to:

  1. Describe measures of risk and return.
  2. Describe the logic and assumptions of the capital asset pricing model.
  3. Identify the differences between passive and active investing.
  4. Identify factors used in popular statistical models.



Saving vs. Investing

Dr. Riordan

Expected Return

Dr. Riordan

.js-id-readings8ER

Chapter 19 - Performance Evaluation

Read pages 176 - 188; review the examples, but you may skip over the exhibits.
Key topics - risk and return, expected return, market risk, Sharpe ratio
2014, Andrew Clare

Capital Asset Pricing Model (CAPM)

Dr. Riordan

.js-id-readings8CAPM

The Capital Asset Pricing Model - Theory and Evidence

Read pages 25 - 30.
Key topics - CAPM
2004, Eugene Fama and Kenneth French

Active vs. Passive Investing

Dr. Riordan

.js-id-readings8FI

Modern Portfolio Theory and Investment Analysis, 9e - Chapter 16

Read pages 385 - 394.
Key topics - passive/active investing, factor investing, statistical models
2014, Edwin Elton, Stephen Brown, William Goetzmann & Martin Gruber

Quantitative Investing

Dr. Riordan

Deliverables

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