Portfolio Management: An Overview

Free CFA Level I lesson in Portfolio Management. 22 min read, ~3,368 words.

Portfolio approach beats individual security selection because low-correlation diversification reduces risk without sacrificing expected return; adding correlated holdings does not diversify. Six-step process: planning, execution, feedback. Write the IPS first, monitor and rebalance last. IPS has seven elements: the Return and Risk objectives, plus constraints Time horizon, Taxes, Liquidity, Legal...

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What this lesson covers

Content
Example 1
Example 2
Common Mistakes
Check Your Understanding
Exam Shortcuts

Learning objectives

portfolio management overview

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