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

  • REW 2024 Utility theory

  • REW 2024 Portfolio theory

    • Portfolio theory illustrations.xlsx​

  • REW 2024 CAPM review

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

  • Goldman Sachs, 2023, Strategic long-term assumptions: US perspective multi asset solutions.

  • ECR Research, 2024, Expected returns.

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• Lecture notes

  • Slides

    • ​Support files: 

      • ​Portfolio decision-making.xlsx

      • Understanding risk tolerance.xlsx

      • Endowment allocation decision.xlsx