Concordia University - FINA 411: Portfolio Management (Solutions)

- FINA 411: Portfolio Management at Concordia University equips you with investment strategies. Explore alternatives like private equity and real estate, then build your portfolio through asset allocation (balancing risk and reward) and strategy selection (passive vs. active for equities and fixed income). Analyze risk with yield curve strategies, evaluate performance, and consider ESG factors. You'll also navigate international markets and apply these concepts to real-world portfolio management.

✔ (Summary) Key Areas of Focus:

• Alternative Securities: These are financial assets that do not fall into the conventional investment categories such as stocks, bonds, and cash. Examples include private equity, venture capital, hedge funds, real estate, and commodities.
• Investors and the Investment Process: This topic covers the steps involved in creating a portfolio, from understanding the investor's goals and risk tolerance to asset allocation and portfolio strategy selection.
• Asset Allocation: Asset allocation is the process of dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash, to balance risk and reward based on an individual's goals, risk tolerance, and investment horizon.
• Portfolio Strategy: Passive Equity Investing: Passive equity investing involves tracking a market index, such as the S&P 500, with the goal of achieving similar returns to the index over time. This strategy minimizes trading and focuses on long-term investment horizons.
• Active Equity Investing: Active equity investing involves selecting individual stocks or other securities with the goal of outperforming a benchmark index. This strategy requires more research and analysis and may involve more frequent trading.
• Portfolio Strategy: Fixed Income: Fixed income investing involves investing in bonds and other debt securities that pay interest over time. This topic covers various strategies for investing in fixed income assets, such as duration management and credit analysis.
• Yield Curve Strategies: These strategies involve analyzing the shape of the yield curve (a graph that plots the interest rates of bonds with different maturities) to make investment decisions and manage interest rate risk.
• Portfolio Performance Evaluation: This topic covers various methods for evaluating the performance of an investment portfolio, such as calculating returns, risk-adjusted performance measures, and benchmark comparisons.
• ESG (Environmental, Social, Governance): ESG investing involves considering environmental, social, and governance factors when making investment decisions. This approach aims to generate positive social and environmental impacts alongside financial returns.
• Globalization and International Investing: This topic covers the benefits and challenges of investing in international markets, including diversification, currency risk, and differences in market regulations.
• Portfolio Management Application: This topic focuses on applying the concepts and strategies learned throughout the course to real-world portfolio management situations.