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Key Points

Course Summary

This course, from CFA Institute Investment FoundationsTM program, introduces key concepts associated with managing an investment portfolio, such as risk, diversification, portfolio construction asset allocation and passive versus active management.

Course Objectives
  • Describe systematic risk and specific risk
  • Describe how diversification affects the risk of a portfolio
  • Explain how portfolios are constructed to address client investment objectives and constraints
  • Compare passive and active management
  • Describe how active managers attempt to identify and capture market inefficiencies
     
Course Agenda

Chapter 1: Specific Risk, Systematic Risk, and Diversification

Chapter 2: Asset Allocation

Chapter 3: Passive and Active Management

Chapter 4: Identifying and Capturing Market Inefficiencies


Investment FoundationsTM courses were developed in partnership with CFA Institute. The CFA Institute Investment Foundations program covers the essentials of finance, ethics and investment roles, providing a clear understanding of the global investment industry.

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. Franklin Templeton Investments (“FTI”) shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. All investments involve risks, including possible loss of principal.

Franklin Templeton Investment Management Limited (FTIML)
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