AIM 03 Portfolio decision-making

With accurate estimates of expected return, risk, and correlations, investment portfolio decision-making involves balancing expected return and risk in a manner that puts stakeholders in the best position possible.

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• Required readings

  • Whaley 2023 Utility theory

  • Whaley 2023 Portfolio theory

    • Portfolio theory illustrations.xlsx​

  • Henderson 20220914 How many stocks should a portfolio hold? FT

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• Lecture notes

  • Slides

    • ​Support files: 

      • ​Portfolio decision-making.xlsx

      • Understanding risk tolerance.xlsx

      • Endowment allocation decision.xlsx