Portfolio management is all about investor needs and it’s a critical area for finance professionals. For that reason, it is featured prominently in the Level 1 CFA exam. In this course, we’ll cover the portfolio management areas of focus on the Level 1 CFA. This includes returns calculations, which are critical to investors evaluating performance, and the CAPM, which forms the basis for modern portfolio theory. In addition, we will go over portfolio management and the aspects of it that you should be aware of for the exam, as well as investment selection and how that fits in with a broader portfolio strategy. In addition, the CFA exam now includes a section on FinTech and advances in the field of finance, so we will cover the fundamentals of that too.

Learning Objectives
  • Discover types of investors and distinctive characteristics and needs of each.
  • Identify and calculate and interpret major return measures and describe their appropriate uses.
  • Explore the capital asset pricing model (CAPM), including its assumptions, and the security market line (SML).
  • Explore how risk tolerance affects risk management and describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods.
  • Recognize the investment constraints of liquidity, time horizon, tax concerns, legal and regulatory factors, and unique circumstances and their implications for the choice of portfolio assets.
  • Discover “fintech;” including DLT/Blockchain, big data, AI, and the application of these concepts in investing.
Last updated/reviewed: March 7, 2024

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation Certification Program

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management
5 Reviews (14 ratings)

Reviews

5
Anonymous Author
I learned from this course about portfolio management, including asset allocation, risk and return, the efficient frontier, Sharpe ratio, Beta, et al.
4
Member's Profile
Good high-level overview. Students should do the calculations of the shown formulas since a number of the CPE exam questions are mathematical.
5
Anonymous Author
Based on the formula, the Sharp rate calculation in the final exam is: (8%-2%)/4%=1.5, why is the answer 2? Did I miss anything? Thanks.
5
Anonymous Author
I like CFA as its helps me to understand what investors are always looking for during investment process
5
Anonymous Author
Presenter clear and articulate, but did not address all objectives in the videos.
Prerequisites
Course Complexity: Advanced

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview
Course Syllabus
INTRODUCTION AND OVERVIEW
  Asset Allocation6:36
  Risk and Return in Investing 12:04
  Investment Performance Metrics11:48
CONTINUOUS PLAY
  CFA Level 1 Prep: 10 - Portfolio Management30:28
SUPPORTING MATERIAL
  Slides: CFA Level 1 Prep: 10 - Portfolio ManagementPDF
  CFA Level 1 Prep: 10 - Portfolio Management Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam