05 V2_20140109_英文Notes_组合.docVIP

金程教育WWW.GFEDU.NET 专业?领先?增值 PAGE45 / NUMPAGES48 专业来自百分百的投入 Chapter 6: Portfolio Management Knowledge Instruction Portfolio emphasized more on asset such as equity, fixed income security, foreign currency, option, real estate and so on. It could be divided into aggressive and conservative types. A high quality portfolio should have high liquidity, stable and high yield, low risk, etc. How to realize such an ideal portfolio is the focus of this subject. This chapter mainly introduces some basic concepts and the process of portfolio management, and two important theories in portfolio – Modern Investment Theory and Capital Market Theory. After studying this chapter, readers should know these two import theories well. Test Direction Portfolio management only covers 5% of contents in CFA level 1 exam. Some students would choose to give it up. In fact, this part in CFA level 1 is simple. However, it is the fundamental for the level 2 and level 3 exams. In CFA level 1 exam, it is easy to obtain the score for this part. There are 4 readings in the Portfolio Management. The first reading is the simple introduction for the portfolio management. The last reading is the introduction for investment policy statement (IPS). The middle part of these four reading is the key to the exam. It mainly introduces the Modern Investment Theory, Capital Market Theory, Capital Asset Pricing Model, etc. Portfolio management: an overview Introduction for portfolio management Terminology Portfolio A collection of investments all owned by the same individual or organization. These investments often include stocks, which are investments in individual businesses; bonds, which are investments in debt that are designed to earn interest; and mutual funds, which are essentially pools of money from many investors that are invested by professionals or according to indices. Diversification is a technique that reduces risk by allocating investments amon