Recommended Learning Route

Following the list and start learning Portfolio Management! Below the list, you can find a short description and preview on what is Portfolio Management about.

1. Standard Deviation and Correlation

2. Mean, Variance, and Covariance

3. Modern Portfolio Theory

4. Efficient Market Hypothesis (EMH)

5. The Capital Asset Pricing Model (CAPM)

6. Risk-Return Tradeoff & Volatility

7. Risk-Averse, Risk-Neutral, and Risk-Seeking

8. Sharpe Ratio

9. Efficient Frontier and Efficient Portfolio

10. Monte Carlo Simulation

11. What Is An API?

12. Portfolio Management: Using Python

What is Portfolio Management?

In the previous sections, we introduced many corporate finance-related concepts to evaluate a specific company. In this chapter, many portfolio management-related topics will be introduced. A portfolio is a collection of financial assets. An investor’s goal is to maximize the potential return of their portfolio and minimize the potential risk by applying different portfolio management strategies.

What Will Be Covered In This Section?

Several key statistics concepts will be first introduced to build a fundamental knowledge of the calculation of risk and return. Then, some classical and widely used portfolio management theories will be explained. By the end of the section, we will walk through a detailed breakdown of how to perform a portfolio management model. The goal is to understand the fundamental ideas of some of the most commonly seen portfolio management approaches and be able to construct our own portfolios according to the concepts.