Investment strategies, risk and reward, and fundamental analysis
Free FINRA Series 6 (Investment Company and Variable Contracts Products Representative) lesson in Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records. 16 min read, ~2,414 words.
Match product to the customer's risk tolerance, time horizon, investment objectives, and liquidity needs before anything else. Diversification lowers unsystematic (company-specific) risk; it cannot remove systematic (market) risk. Beta measures systematic risk versus the market (market beta is 1.0); alpha is return above what beta predicts. CAPM expected return is...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- C7
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