Introduction to Modern Portfolio Theory

Framework for Constructing Portfolios Modern Portfolio Theory

Sub-topic 1

Assumptions of the Theory

Sub-topic 2

Risk Averse Risk Seeking and Risk Neutral Investor

Sub-topic 3

Calculation of Expected Rate of Return for Individual Security

Sub-topic 4

Graphical Presentation of Portfolio Risk Return of Two Securities

Sub-topic 5

Concept of Efficient Frontier

Sub-topic 6

Portfolio Optimization Process

Sub-topic 7

Estimation Issues

Sub-topic 8