***Portfolio Management Review***

  1. Know how to calculate E®, std dev and variance for two asset portfolio COLD!!! 2) Know the efficient frontier and how to select the optimal portfolio 3) Know how to explain systematic and unsytematic risk, beta, the CML, CAL and SML 4) Know two differences between SML and CML 5) Know how to determine if security is undervalued/overvalued relative to SML 6) Know the assumptions behind the CAPM ****7) BE READY FOR AN IPS (Investment Policy Statement) for an individual investor—review the 2 objectives and 5 constraints well…

going by memory here: 7) Objectives: return and risk Constraints: LLTTU legal factors liquidity time horizon tax issues unique preferences

maratikus Wrote: ------------------------------------------------------- 1) Know how to calculate E®, std dev and > variance for two asset portfolio COLD!!! If you know this for a three asset portfolio you’re fine. I’m pretty sure there was one last year.