Concordia University - FINA 411: Portfolio Management

FINA 411: Portfolio Management explores modern investment theory and its practical application to constructing and managing portfolios. The course covers topics such as building optimal asset portfolios, extending and testing the Capital Asset Pricing Model (CAPM) through models like the Zero-Beta Model, and evaluating investment performance using measures such as the Sharpe ratio and risk-adjusted returns. It examines both active and passive management strategies, portfolio insurance, and the implications of market efficiency. Students will also gain exposure to tools like Bayesian statistics for forecasting and Multifactor Arbitrage Pricing Theory (APT) for seeking alpha.

Throughout the course, students will learn to identify key investment classes and assess portfolio performance using relevant metrics. Topics include portfolio management structures, index models, and empirical tests of model accuracy. The curriculum also covers managing bond portfolios, hedge fund strategies, and performance evaluation techniques. Additionally, students will analyze the Efficient Market Hypothesis (EMH) and its impact on market behavior, alongside alternative approaches such as behavioral and technical analysis. To enroll, students must have completed either FINA 380 or FINA 385, as well as FINA 390 or FINA 395.