The companion workbook to the Investment Management volume in the CFA Institute’s Portfolio Management in Practice series provides students and professionals with essential practice regarding key concepts in the portfolio management process. Filled with stimulating exercises, this text is designed to help learners explore the multifaceted topic of investment management in a meaningful and productive way.
The Investment Management Workbook is structured to further readers’ hands-on experience with a variety of learning outcomes, summary overview sections, challenging practice questions, and solutions. Featuring the latest tools and information to help users become confident and knowledgeable investors, this workbook includes sections on professionalism in the industry, fintech, hedge fund strategies, and more.
With the workbook, readers will learn to:
- Form capital market expectations
- Understand the principles of the asset allocation process
- Determine comprehensive investment strategies within each asset class
- Integrate considerations specific to high net worth individuals or institutions into the selection of strategies
- Execute and evaluate chosen strategies and investment managers
Well suited for individuals who learn on their own, this companion resource delivers an example-driven method for practicing the tools and techniques covered in the primary Investment Management volume, incorporating world-class exercises based on actual scenarios faced by finance professionals every day.
Table of Contents
Part I Learning Objectives, Summary Overview, and Problems 1
Chapter 1 Professionalism in the Investment Management 3
Learning Outcomes 3
Summary 3
Practice Problems 4
Chapter 2 Fintech in Investment Management 5
Learning Outcomes 5
Summary 5
Practice Problems 6
Chapter 3 Capital Market Expectations, Part 1: Framework and Macro Considerations 9
Learning Outcomes 9
Summary 10
Practice Problem 13
Chapter 4 Capital Market Expectations, Part 2: Forecasting Asset Class Returns 21
Learning Outcomes 21
Summary 22
Practice Problems 25
Chapter 5 Overview of Asset Allocation 35
Learning Outcomes 35
Summary 35
Practice Problems 37
Chapter 6 Principles of Asset Allocation 39
Learning Outcomes 39
Summary 40
Practice Problems 41
Chapter 7 Asset Allocation with Real-World Constraints 51
Learning Outcomes 51
Summary 51
Practice Problems 53
Chapter 8 Currency Management: An Introduction 63
Learning Outcomes 63
Summary 63
Practice Problems 66
Chapter 9 Overview of Fixed-Income Portfolio Management 79
Learning Outcomes 79
Summary 79
Practice Problems 81
Chapter 10 Liability-Driven and Index-Based Strategies 87
Learning Outcomes 87
Summary 87
Practice Problems 91
Chapter 11 Overview of Equity Portfolio Management 101
Learning Outcomes 101
Summary 101
Practice Problems 102
Chapter 12 Passive Equity Investing 105
Learning Outcomes 105
Summary 105
Practice Problems 107
Chapter 13 Active Equity Investing: Strategies 113
Learning Outcomes 113
Summary 113
Practice Problems 115
Chapter 14 Hedge Fund Strategies 121
Learning Outcomes 121
Summary 121
Practice Problems 124
Chapter 15 Overview of Private Wealth Management 131
Learning Outcomes 131
Summary 131
Practice Problems 133
Chapter 16 Topics in Private Wealth Management 141
Learning Outcomes 141
Summary 141
Practice Problems 144
Chapter 17 Portfolio Management for Institutional Investors 151
Learning Outcomes 151
Summary 152
Practice Problems 155
Chapter 18 Trade Strategy and Execution 163
Learning Outcomes 163
Summary 163
Practice Problems 165
Chapter 19 Portfolio Performance Evaluation 175
Learning Outcomes 175
Summary 176
Practice Problems 177
Chapter 20 Investment Manager Selection 181
Learning Outcomes 181
Summary 181
Practice Problems 183
Part II Solutions 199
Chapter 1 Professionalism in the Investment Management 201
Solutions 201
Chapter 2 Fintech in Investment Management 203
Solutions 203
Chapter 3 Capital Market Expectations, Part I: Framework and Macro Considerations 205
Solutions 205
Chapter 4 Capital Market Expectations, Part II: Forecasting Asset Class Returns 211
Solutions 211
Chapter 5 Overview of Asset Allocation 219
Solutions 219
Chapter 6 Principles of Asset Allocation 221
Solutions 221
Chapter 7 Asset Allocation with Real-World Constraints 229
Solutions 229
Chapter 8 Currency Management: An Introduction 235
Solutions 235
Chapter 9 Overview of Fixed-Income Portfolio Management 249
Solutions 249
Chapter 10 Liability-Driven and Index-Based Strategies 253
Solutions 253
Chapter 11 Overview of Equity Portfolio Management 259
Solutions 259
Chapter 12 Passive Equity Investing 263
Solutions 263
Chapter 13 Active Equity Investing: Strategies 267
Solutions 267
Chapter 14 Hedge Fund Strategies 273
Solutions 273
Chapter 15 Overview of Private Wealth Management 283
Solutions 283
Chapter 16 Topics in Private Wealth Management 291
Solutions 291
Chapter 17 Portfolio Management for Institutional Investors 299
Solutions 299
Chapter 18 Trade Strategy and Execution 305
Solutions 305
Chapter 19 Portfolio Performance Evaluation 315
Solutions 315
Chapter 20 Investment Manager Selection 319
Solutions 319
About the CFA Program 333
