Investing

  1. Portfolio Management
    1. Modern Portfolio Theory (MPT)
      1. Efficient Frontier
        1. Risk-Return Optimization
          1. Portfolio Combinations
            1. Minimum Variance Portfolio
            2. Capital Market Line (CML)
              1. Risk-Free Asset
                1. Market Portfolio
                  1. Capital Allocation Line
                  2. Assumptions and Limitations
                    1. Normal Distribution Assumption
                      1. Static Correlations
                        1. Transaction Costs Ignored
                          1. Practical Implementation Challenges
                        2. Asset Allocation
                          1. Strategic Asset Allocation
                            1. Long-Term Policy
                              1. Target Allocations
                                1. Rebalancing Triggers
                                2. Tactical Asset Allocation
                                  1. Short-Term Adjustments
                                    1. Market Timing Elements
                                      1. Active Management
                                      2. Dynamic Asset Allocation
                                        1. Life-Cycle Adjustments
                                          1. Changing Circumstances
                                            1. Glide Path Implementation
                                            2. Factors Influencing Allocation
                                              1. Risk Tolerance
                                                1. Time Horizon
                                                  1. Return Objectives
                                                    1. Liquidity Needs
                                                      1. Tax Considerations
                                                    2. Diversification
                                                      1. Reducing Unsystematic Risk
                                                        1. Company-Specific Risk
                                                          1. Industry-Specific Risk
                                                            1. Optimal Number of Holdings
                                                            2. Correlation Between Assets
                                                              1. Correlation Coefficients
                                                                1. Low Correlation Benefits
                                                                  1. Correlation Instability
                                                                  2. Diversification Across Asset Classes
                                                                    1. Stocks and Bonds
                                                                      1. Alternative Investments
                                                                        1. Real Estate
                                                                          1. Commodities
                                                                          2. Geographic Diversification
                                                                            1. Domestic vs. International
                                                                              1. Developed vs. Emerging Markets
                                                                                1. Currency Diversification
                                                                                2. Sector Diversification
                                                                                  1. Industry Allocation
                                                                                    1. Cyclical vs. Defensive Sectors
                                                                                      1. Sector Rotation Strategies
                                                                                      2. Time Diversification
                                                                                        1. Dollar-Cost Averaging
                                                                                          1. Systematic Investment Plans
                                                                                        2. Rebalancing a Portfolio
                                                                                          1. Calendar-Based Rebalancing
                                                                                            1. Quarterly Rebalancing
                                                                                              1. Annual Rebalancing
                                                                                                1. Pros and Cons
                                                                                                2. Threshold-Based Rebalancing
                                                                                                  1. Percentage Deviation Triggers
                                                                                                    1. Absolute Dollar Triggers
                                                                                                      1. Band Approach
                                                                                                      2. Tax Implications of Rebalancing
                                                                                                        1. Taxable vs. Tax-Advantaged Accounts
                                                                                                          1. Tax-Loss Harvesting Opportunities
                                                                                                            1. Wash Sale Rules
                                                                                                            2. Rebalancing Costs
                                                                                                              1. Transaction Costs
                                                                                                                1. Bid-Ask Spreads
                                                                                                                  1. Market Impact
                                                                                                                2. Measuring Portfolio Performance
                                                                                                                  1. Calculating Returns
                                                                                                                    1. Time-Weighted Return
                                                                                                                      1. Geometric Mean Return
                                                                                                                        1. Eliminating Cash Flow Timing
                                                                                                                        2. Money-Weighted Return (IRR)
                                                                                                                          1. Internal Rate of Return
                                                                                                                            1. Cash Flow Timing Impact
                                                                                                                            2. Arithmetic vs. Geometric Returns
                                                                                                                            3. Benchmarking
                                                                                                                              1. Selecting Appropriate Benchmarks
                                                                                                                                1. Style-Appropriate Benchmarks
                                                                                                                                  1. Custom Benchmarks
                                                                                                                                  2. Benchmark Limitations
                                                                                                                                    1. Survivorship Bias
                                                                                                                                      1. Style Drift
                                                                                                                                    2. Risk-Adjusted Returns
                                                                                                                                      1. Sharpe Ratio
                                                                                                                                        1. Excess Return per Unit of Risk
                                                                                                                                          1. Risk-Free Rate Considerations
                                                                                                                                          2. Sortino Ratio
                                                                                                                                            1. Downside Deviation Focus
                                                                                                                                              1. Upside vs. Downside Risk
                                                                                                                                              2. Alpha and Beta
                                                                                                                                                1. Alpha Generation
                                                                                                                                                  1. Beta Measurement
                                                                                                                                                    1. Capital Asset Pricing Model (CAPM)
                                                                                                                                                    2. Information Ratio
                                                                                                                                                      1. Treynor Ratio
                                                                                                                                                      2. Performance Attribution
                                                                                                                                                        1. Asset Allocation Effect
                                                                                                                                                          1. Security Selection Effect
                                                                                                                                                            1. Interaction Effect

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                                                                                                                                                        5. Security Analysis and Valuation

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                                                                                                                                                        7. Investment Strategies and Philosophies