The seminar provides an introduction to portfolio mathematics, from means and variances of returns to correlation and portfolio variance. This leads the participant to the efficient frontier, portfolio theory and the concept of portfolio diversification. Eventually this seminar discusses normally distributed returns and basic applications for value-at-risk, as well as the probability of reaching a target or beating a benchmark. This seminar is very useful for anybody with little experience in applying basic mathematical models in finance.

 

At the end of Intrinsic Value's training seminar in portfolio mathematics the participant should be able to:

􀂅  Calculate  the  return,  mean  return,  variance  and standard deviation of a

     single asset.

􀂅  Calculate  the  return,  mean  return,  variance  and standard deviation of          a portfolio.

􀂅  Calculate the correlation between two assets.

􀂅  Identify a dominated portfolio.

􀂅  Discuss the efficient frontier.

􀂅  Calculate the minimum variance hedge ratio.

􀂅  Describe how diversification reduces risk.

􀂅  Describe  the  impact  of  serial  correlation  on  the  standard  deviation  of

     returns.

􀂅  Calculate Value at Risk in a portfolio.

􀂅  Calculate the probability that one portfolio will outperform another portfolio. 􀂅  Calculate the probability of attaining a return goal.