01
Risk, return and diversification
Why does combining two risky assets reduce risk?
Primary source★ LandmarkFree
Portfolio Selection ↗Harry Markowitz, 1952
Fourteen pages that created modern portfolio management.
Core · Module 05
Portfolio Theory
Markowitz turned investing from stock-picking into an optimisation problem, and won a Nobel for a result that fits on one page.
By the end of this module
You can explain why diversification is the only free lunch, and where the theory quietly breaks.
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02
The efficient frontier and optimisation
What is the best possible portfolio for a given risk?
03
CAPM, beta and factor models
What risk does the market actually pay you to take?
Primary source★ LandmarkFree
Common risk factors in the returns on stocks and bonds ↗Fama & French, 1993
Quiz
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