CFA Level 1: Study Session 18. Portfolio Management (1) - Reading 53. Portfolio Risk and Return: Part II

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

	1. Capital Market Theory a. describe the implications of combining a risk-free asset with a portfolio of risky assets; b. explain the capital allocation line (CAL) and the capital market line (CML);
	2. Pricing of Risk and Computation of Expected Return c. explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk; d. explain return generating models (including the market model) and their uses; e. calculate and interpret beta;
	3. The Capital Asset Pricing Model f. explain the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML); g. calculate and interpret the expected return of an asset using the CAPM;
	4. Applications of the CAPM h. describe and demonstrate applications of the CAPM and the SML.

I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.

No flashcard found. Add a private flashcard for the reading.