- CFA Exams
- 2021 Level I
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
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Learning Outcome Statements PDF Download
| 1. Major Return Measures a. calculate and interpret major return measures and describe their appropriate uses; | |
| 2. Variance and Covariance of Returns c. calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data; | |
| 3. Historical Return and Risk b. describe characteristics of the major asset classes that investors consider in forming portfolios; | |
| 4. Risk Aversion and Portfolio Selection d. explain risk aversion and its implications for portfolio selection; | |
| 5. Portfolio Risk e. calculate and interpret portfolio standard deviation; f. describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated; | |
| 6. Efficient Frontier g. describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio; | |
| 7. Optimal Portfolio h. discuss the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line. |
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