- CFA Exams
- Dec. 2020 Level 1
- Study Session 18. Portfolio Management I
- Reading 52. Portfolio Risk and Return: Part I

### Reading 52. Portfolio Risk and Return: Part I

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### Learning Outcome Statements

Reading 52. Portfolio Risk and Return: Part I | |
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1. Major Return Measuresa. calculate and interpret major return measures and describe their appropriate uses; | |

2. Variance and Covariance of Returnsc. calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data; | |

3. Historical Return and Riskb. describe characteristics of the major asset classes that investors consider in forming portfolios; | |

4. Risk Aversion and Portfolio Selectiond. explain risk aversion and its implications for portfolio selection; | |

5. Portfolio Riske. calculate and interpret portfolio standard deviation;
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6. Efficient Frontierg. describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio; | |

7. Optimal Portfolioh. discuss the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line. |