STOCK MARKETS ECONOMY

Use the Markowitz Portfolio Selection Model to construct a portfolio
Integrate the concepts of the efficient frontier and an optimal portfolio
Describe alternative methods to obtain the efficient frontier
Apply asset allocation
Integrate the effect of borrowing and lending possibilities when compiling a portfolio
Describe the separation theorem
Distinguish between the capital market line and the security market line
Estimate beta
Evaluate the role of beta in portfolio management
Construct an optimal portfolio using Sharpe’s Portfolio
Describe the main characteristics of Arbitrage Pricing Theory briefly
Interpret a yield spread