Chapter 01 - The Investment Setting
CHAPTER 01
THE INVESTMENT SETTING
Forms of Investment
The Setting of Investment Objectives
Risk and Safety of Principal
Current Income versus Capital Appreciation
L
Notes 4B
Portfolio Theory II: Markowitz Diversification
and Optimal Risky Portfolio
Learning Objectives
Define nave diversification and Markowitz
(efficient/planned) diversification.
Compare and con
Notes 3B: Risk Aversion, Utility, and
Review of Portfolio Mathematics
Learning Objectives
II. Risk and Risk Aversion
Define risk aversion.
Calculate the risk premium of a risky investment.
Evaluate
Notes 3A
Return & Risk
A. Return Formulation and Measurement
B. Risk, Risk Premium, and Their Measurement
1
CFA Institutes Dynamic Framework
2
3A. Return Formulation and
Measurement
Learning Objective
Notes 4A
Portfolio Theory I: Capital Allocation
Learning Objectives
Define capital allocation line (CAL).
Calculate the expected return and risk for a portfolio on the
CAL
Explain how the optimal m
Notes 1
The Process of Portfolio Management
Learning Objectives
Explain what portfolio management is.
Describe and explain the CFA Institutes dynamic portfolio
management process with an aid of a sche
Notes 2
Asset Allocation
Learning Objectives
Summarize the function of strategic asset allocation in
portfolio management.
Discuss the role of strategic asset allocation in relation
to exposures to sy
Chapter 28 (BKM 10th ed) finc5120 for Notes 1
CFA PROBLEMS
1.
a.
(i) Return requirement: IPS Y has the appropriate language. Since the plan is
currently underfunded, the primary objective should be to
Chapter 24 (BKM 10ed) for Finc 5120 for Notes 3A
1.
The dollar-weighted average will be the internal rate of return between the initial
and final value of the account, including additions and withdraw
Chapter6CFAProblems#49
CFAPROBLEMS
4.
Indifference curve 2 because it is tangent to the CAL.
5.
Point E
6.
(0.6 $50,000) + [0.4 ($30,000)] $5,000 = $13,000
7.
(b) Higher borrowing rates will reduce th
Seattle University
Albers School of Business and Economics
Review topics for FINC 5120 for the Mid-term exam
Winter 2017
Professor Jot Yau, CFA
Disclaimer
The following learning outcome statement list
Chapter 17 - Stock Index Futures and Options
SOLUTIONS MANUAL
CHAPTER 17
STOCK INDEX FUTURES AND OPTIONS
Answers to Text Discussion Questions
1. Why are stock index futures and options sometimes refer
Chapter 13 - Duration and Reinvestment Concepts
SOLUTIONS MANUAL
CHAPTER 13
DURATION AND REINVESTMENT CONCEPTS
PROBLEMS
Weighted average life
1. Compute the simple weighted average life for the follow
Chapter 16 - Commodities and Financial Futures
SOLUTIONS MANUAL
CHAPTER 16
COMMODITIES AND FINANCIAL FUTURES
Answers to Text Discussion Questions
1. What is a futures contract?
16-1. It is an agreemen