(FALL 2009)

Decision Modeling for Asset Allocation: Modern Portfolio Theory (Section 1) MGMT X433.22  (1.5)

An elective course in the Certificate Programs in Investor Relations and Personal Financial Planning.
What's the single, most important reason that investors lose money in their investment portfolios? Poor asset allocation: failing to determine how much should be invested in each security to achieve a desired level of return while minimizing investment risk. Modern Portfolio Theory - beginning with the work of economist Harry Markowitz - offers a method for making proper investment decisions. This course covers the theory of Dr. Markowitz' work, and has the students develop their own investment portfolio models in Microsoft Excel. Along the way, the students will learn about expected values, measuring risk, correlation of returns, probability distributions, and how a portfolio of securities can have lower risk than that of any of the individual securities. Prerequisite: Students need a solid working knowledge of Excel. See enrollment confirmation for login information.

William (Bill) Campbell, III, CFA®, M.A., is the principal in a software development firm in Yorba Linda, CA. His background includes five years analyzing mortgage securities for a large bond management company, three years in risk management at a large aerospace firm, more than fifteen years teaching university level mathematics, and more than five years teaching the CFA curriculum. Campbell is also a professional magician, and owns, trains and rides three Arabian horses.