Portfolio theory
How to combine investments: weights, the efficient frontier, beta, and what the market pays you for.
- Weights and returnsDescribe a portfolio by its proportions.
- The risk of two assetsRisk does not average. It can partly cancel.
- The efficient frontierThe best trade-offs between risk and return.
- Risk-free rates and the best mixAdd a safe asset, and one risky portfolio stands out.
- BetaHow much a stock moves when the market moves.
- AlphaSeparating skill from simply taking market risk.
- Index funds and feesThe cheapest strategy, and why it is so hard to beat.
- RebalancingKeeping a portfolio at the weights you chose.
- Track quizFive questions. Get four right to finish the track.