Teaching Methodologies
In this course, interactive methodologies are employed to integrate the theoretical and practical dimensions of the content to be explored,
encouraging participation, debate, and individual critical reflection on real-life cases. Learning the analysis of asset portfolio management
from the perspective of the financial investor should provide the ability to comprehend and analyze real cases and effectively communicate
the conclusions drawn.
Learning Results
The rational investor (insatiable and risk-averse) has as main objectives to maximize the return on their investment portfolio with the least
possible risk. This presupposes a diversification strategy, thus estimating the risk not only of an individual security but of a portfolio of
assets. Therefore, the specific objectives of the course are:
a) Understand the fundamental concepts and principles of portfolio management;
b) Grasp the main theoretical models for the evaluation of financial assets;
c) Comprehend portfolio selection and asset allocation;
d) Grasp the key indicators for evaluating portfolio performance
Program
1. Introduction to Portfolio Management
1.1. Return and risk of an individual security
1.2. Return and risk of a portfolio of assets
1.3. Investor choices and risk aversion
1.4. Diversification
1.5. Types of risk
2. Markowitz Portfolio Theory
2.1. The Markowitz Model
2.2. Minimum variance portfolio
2.3. Efficient Portfolio
2.4. Capital Market Line
3. Introduction to Financial Asset Valuation Models
3.1. Beta of an individual security
3.2. Beta of a portfolio of securities
3.3. Capital Asset Pricing Model (CAPM)
4. Portfolio Management
4.1. The importance of the Portfolio perspective
4.2. The Portfolio Management Process
4.3. Asset Allocation Criteria
4.4. Passive Management vs. Active Management
5. Key Performance Evaluation Indicators
5.1. Treynor Ratio
5.2. Sharpe Ratio
5.3. Jensen’s Alpha
5.4.Tracking Error
Internship(s)
NAO
Bibliography
Neves, M. E, Quelhas, A. P. (2013). Carteiras de investimento: gestão e avaliação do desempenho, Almedina.
Pinho, C., Soares, I. (2008). Finanças: Mercados e instrumentos, 2.ª Edição, Edições Sílabo.
Bodie, Z., Kane, A. And Marcus, A. (2014). Investments, 10.ª Edição, McGraw-Hill.
Silva, E. (2015). Gestão de Carteiras: Rendibilidade e Risco, Vida Económica.