Assignment:
This is where the application of concepts of portfolio theory to the asset portfolio
You will be looking at this from the position of hindsight and lessons learned; what worked (and why), what did not (and why), what would you do differently knowing what you now know. Apply Modern Portfolio Theory to your choices and project changes you need to make to adhere to Modern Portfolio Theory.
The argument is less convincing I found the source. This weeks lecture notes: This week we talk about Derivative products, commodity investing and investing in or creating new financial products that get their value from many different sources. CDO, CMO's, commodity options, swaps, futures trading - all of these exotic vehicles examined and explained.
Real assets versus derivative products need I say anything more?
Should we invest in these products for return or primarily for risk management. How can these items affect our portfolios?
Let's learn about and discuss these investments this week!
Outcomes:
1. Discuss the use and impact of derivative products on investment management
2. Perform analysis to review aspects of derivative instruments
3. Apply concepts in readings and discussions to the week assignment
4. Research methodology for derivative securities in the context of this week material
Assignments: Participate in discussion boards at least three times this week