Available as a 2 day in-house course                                                                                 

Course Overview

This two day course provides participants with detailed tuition on all of the major activities within asset management.

These include the process of investing, the impact of macro-economic parameters, the impact of portfolio theory on the investment process, and the use of bonds, stocks and derivatives in portfolio management. Theoretical knowledge will be combined with practical exercises.

Lecturing will be combined with group sessions and at the end of this course participants will have a thorough understanding of the financial markets and of the process of investing

Course Content

The process of investing
Introduction
History
   o Period 1900-1950 : first research
   o Period 1950-1975 : portfolio theory
   o Period 1975-2000 : development of option theory and behavioural finance
Types of investors
   o Private investors
   o Institutional investors
Risk, diversification and leverage
   o Diversification
   o Leverage
The process of investing: an overview

Impact of macro economic parameters on asset management
Introduction
Anticipation on changes of the macro-economic parameters
   o Long time horizon
   o Kondratieff cycle
Impact of interest rates and inflation on long term asset management
Impact of macro-economic data on investment decisions

Impact of the portfolio theory on the investment process
Price on the financial markets
   o Risk and return
   o Effects of diversification
   o Efficient portfolios
The Capital Asset Pricing Model ( CAPM)
   o Basic form of CAPM
   o Different types of risk
   o Market portfolio
Alternative models for pricing
   o The international CAPM
   o CAPM with limited liquidity
   o Empirical Models
Pitfalls in the asset management theory
   o Rationality of the markets
   o Perfection of the markets
   o Efficiency of the markets
   o Positioning of Behavioural Finance

Interest bearing instruments as part of the investment process
Structuring Time
   o Deterministic models
   o Stochastic models
The price of a bond
   o Geometrical average of expected return
   o Mathematical average of expected return
   o Yield to maturity
Parameters of interest rate risk
   o Interest rate risk
   o Duration of a bond
   o Modified duration of a bond
   o Key rate duration of a bond
   o Convexity of a bond
   o M square as a indicator of diversification
   o Modified Horizon Duration
Bond strategies

Stocks as part of the investment process
Stocks as investment category
   o Long term investment result
   o Equity premium puzzle
Pricing of stocks based upon fundamental analysis
   o Price-to-book and Price/earnings ratio
   o Parameters needed to create return
   o Parameters needed to create growth
   o Sector and/or geographical comparison
   o Dividend discount models
Technical analysis
   o Chart reading
   o Relative strength, momentum end other indicators
   o Statistical technical analysis
Valuation of stocks : modern portfolio approach

Options and other derivative instruments
Forwards, futures and options
   o Forwards
   o Futures
   o Options
Binominal valuation of options
Risk management
   o Strategies to hedge market risk
   o Delta Hedging
   o Gamma and theta hedging
   o Option spread strategies
 
PDF of course outline - Please note that tailoring is possible


IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk

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