Sumários

Index Models

15 Março 2022, 11:00 Rita Sousa


Single index model (SIM)

A single-index asset market

Decomposition of the return:

- the first and second moments using the model's components

- systematic and unique risk of an asset according to the SIM

Index models and diversification

The Capital Asset Pricing Model (CAPM)

10 Março 2022, 11:00 Rita Sousa


CAPM in the money-management industry and in the capital budgeting decisions

Relax some of the CAPM assumptions

The CAPM and liquidity

Conclusions

Practice Questions

The Capital Asset Pricing Model (CAPM)

8 Março 2022, 11:00 Rita Sousa


CAPM assumptions

Returns of asset and returns of the market

The Capital Market Line (CML)

Equilibrium in capital markets (CAPM)

The Security Market Line (SML)

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24 Fevereiro 2022, 11:00 Rita Sousa


The Markowitz Portfolio Optimization Model

Risk Aversion and Utility Values

CAL and the Separation Property

Riskless security, Tobin (1958) model

Criticism of the mean-variance model

Summary of the topic

Practice Questions

Portfolio theory

22 Fevereiro 2022, 11:00 Rita Sousa


Portfolio efficient frontier

Asset Allocation with Two Risky Asset Classes

Capital allocation line and Sharpe ratio, risk free asset

Weight of assets in the optimal risky portfolio (2 assets case)

Practical example and exercises