Portfolio Analysis

The course builds upon the methodologies, critical thinking, and skills developed during undergraduate studies in Finance, Banking, and Investing. It particularly draws from the fields of mathematics, financial mathematics, Financial Investment, statistics, and informatics, including linear algebra, working with probability distributions, diagnosing and testing regression models, and utilizing functions in MS Excel. A fundamental understanding of MS Excel and the RStudio environment is required to grasp the principles of financial portfolio management and portfolio theory thoroughly. Upon course completion, students will achieve the following:

  • Comprehensive knowledge of both traditional and contemporary approaches for analyzing a portfolio of securities, with a primary focus on the mean-variance model.

  • The ability to construct correlation and covariance structures for securities, enabling the modeling of individual securities' volatility and portfolio performance.

  • Proficiency in sorting, processing, analyzing, graphically representing, and explaining securities data using the widely employed tool, MS Excel.

  • Competence in logically justifying the selection of portfolio components based on investor objectives.

This course equips students with financial reasoning, data processing and modeling skills, and the capacity to make price forecasts for securities. These acquired proficiencies are integral for roles such as financial analyst, financial advisor, and portfolio manager.