Equities and portfolios
Stock valuation, portfolio choice, the efficient frontier, CAPM and factor models.
10 planned
No page in this subject is open yet. The planned list below shows what is coming, in learning order.
Planned
In learning order. These are not pages yet.
- How expected utility changes risky choicesAdvanced undergrad
- How correlation changes portfolio riskAdvanced undergrad
- Where does the efficient frontier come from?Advanced undergrad
- The Kelly criterion: how much to bet when you have an edgeInterview
- Arbitrage pricing theory: how factor exposures set expected returnsAdvanced undergrad
- Adding a risk-free asset: the capital market line and the tangency portfolioAdvanced undergrad
- Why CAPM rewards only market risk (beta)Advanced undergrad
- What does a dividend discount model assume about growth?Advanced undergrad
- Merton's portfolio problem: why the optimal stock fraction is constantGraduate
- Testing a factor model: alphas and cross-sectional regressionsAdvanced undergrad
How it connects
Builds on Probability Regression Optimization Linear algebra Arbitrage and risk-neutral pricing Corporate finance Stochastic calculus and SDEs
Leads to Market risk Arbitrage and risk-neutral pricing Corporate finance Derivatives
Subjects marked “connection” are linked by a related idea, not by a prerequisite.