The most comprehensive educational resources for finance

How to Calculate Portfolio Risk and Return

In this article, we will learn how to compute the risk and return of a portfolio of assets. Let’s start with a two asset portfolio. Portfolio Return Let’s say the returns from the two assets in the portfolio are R1 and R2. Also, assume the weights of the two assets in the portfolio are w1

Corporate Finance Lecture 5: Risk and Return

This video is a part of online course on Corporate Finance by Professor Aswath Damodaran of NYU. This video discusses: Risk and Return Models The Capital Asset Pricing Model Mean-Variance Framework Importance of Diversification Risk: Diversifiable or not? Effects of Diversification Marginal Investor Analyzing Investor Bases The Market Portfolio Risk of an Individual Asset Limits

Portfolio Risk & Return – Part 1A – Video

This video by Arif Irfanullah provides a very clear conceptual understanding of the portfolio risk and return concepts as a part of the CFA Level 1 syllabus. This first video talks about Major return measures Major asset classes for investments Evaluating investments Covariance and correlation Risk and return of a two asset portfolio Efficient Frontier

Risk, Return, and Social Security

This lecture addresses some final points about the CAPM. How would one test the theory? Given the theory, what’s the right way to think about evaluating fund managers’ performance? Should the manager of a hedge fund and the manager of a university endowment be judged by the same performance criteria? More generally, how should we

Omega Index

The Omega Index (or Omega ratio) was developed by Keating and Shadwick in 2002. It is a ratio of the upside variation in the portfolio and the downside variations of the portfolio. The returns of a portfolio are partitioned into losses and gains compared to a threshold value. The Omega ratio is then the ratio