ASC587: Portfolio And Investment Analysis / College of Computing, Informatics and Mathematics

The course introduces students to modern portfolio theory (capital asset pricing models and arbitrage pricing models). This involves the theory and practice of optimally combining securities into portfolios, and efforts involving simplification of the amount and type of inputs to the portfolio problem as well as simplification of the computational procedure to find sets of desirable portfolios. The course also provides a discussion of equilibrium in the capital markets and shows how portfolio theory can be used to infer what equilibrium returns and prices will be for individual securities. Finally, the course suggests ways that equilibrium theory can be used to manage portfolios more meaningfully. This course follows the syllabus of CM2 from IFoA.