Analyst Dojo

Learning Module 5 of Quantitative Methods 6–9% of the exam

Portfolio Mathematics

3 lessons. About 0 minutes in cram mode, 0 minutes in full.

Lessons for this module are being written. The outcomes and lesson plan below are final.

Lessons

  1. 1
    Portfolio Expected Return and Variance of Return

    Coming soon

  2. 2
    Forecasting Correlation of Returns: Covariance Given a Joint Probability Function

    Coming soon

  3. 3
    Portfolio Risk Measures: Applications of the Normal Distribution

    Coming soon

What the exam expects you to do

  1. Calculate and interpret the expected value, variance, standard deviation, covariances, and correlations of portfolio returns.
  2. Calculate and interpret the covariance and correlation of portfolio returns using a joint probability function for returns.
  3. Define shortfall risk, calculate the safety-first ratio, and identify an optimal portfolio using Roy’s safety-first criterion.