CFA Level 2 - Portfolio Management

Master the Portfolio Management topic for the CFA Level 2 exams

Prepare for the CFA Level 2 exam with 100% confidence! The course covers the Portfolio Management syllabus in detail so you will have a complete understanding when tackling this section in the exam. After you grasp the concepts, try out a lot of questions (from the Learning Ecosystem and End of Chapter questions) to increase your mastery of the readings.

AFTER GOING THROUGH THIS COURSE, YOU DO NOT HAVE TO STUDY FROM THE TEXTBOOK ANYMORE (OR ANY OTHER SOURCE)!

Exam Weight: 10% - 15%

This course will prepare you to ace the Portfolio Management topic area in the CFA Level 2 syllabus. Don't fall behind the bell curve while others are going all in their studies.

At the end of this course, students should be able to:

• explain the creation and redemption process of ETFs, how ETFs are traded on secondary markets, costs of owning ETFs, types of ETF risk and the portfolio uses of ETFs

• describe Arbitrage Pricing Theory (APT), macroeconomic factor models, fundamental factor models, statistical factor models, active risk/tracking risk, interpret information ratio

• explain the use of Value at Risk (VaR) in portfolio risk measurement; compare parametric, historical simulation, and Monte Carlo VaR; describe extensions of VaR, sensitivity risk measures, scenario risk measures

• explain how market values are affected by changes in default-free interest rates across maturities, timing and/or magnitude of expected future cash flows, and risk premiums

• state and interpret fundamental law of active portfolio management and its components (transfer coefficient, information coefficient, breadth, and active risk)

• explain the components of execution costs (explicit and implicit); describe the implementation shortfall approach; market fragmentation; types of electronic traders; low-latency traders; risks associated with electronic trading; abusive trading practices

What We Cover in this Course:

• Exchange-Traded Funds: Mechanics and Applications

• Using Multifactor Models

• Measuring and Managing Market Risk

• Economics and Investment Markets

• Analysis of Active Portfolio Management

• Trading Costs and Electronic Markets

  
  

What you will get by buying this course is:

• detailed coverage of the syllabus, taught by our seasoned instructors of the CFA Program.

• support in the Q&A forum (course-related questions) from our instructors.

• the confidence to nail this topic in the exam!