Subject 2
Connecting investment analysis and risk
Learn valuation, return, risk measures, and portfolio decisions as a single reasoning flow.
Understand inputs before formulas
For present value, bond price, and expected return, mark the cash-flow timing, units, and discount rate before calculating.
Pair every risk measure with its limit
Variance, standard deviation, beta, and VaR describe different risks and depend on different assumptions.
Isolate extra risks in alternatives and overseas assets
Separate liquidity, valuation, leverage, currency, country, and regulatory risks from traditional asset risk.