Investment Fundamentals

"What's the use of happiness? It can't buy you money. " — Henny Youngman

• Investment Math: Arithmetic and Geometric Mean, Total Return, Return Relative, Currency Conversions, and Measuring Risk
• Nominal and Real Interest Rates
• Present Value and Future Value of Money
• Present Value and Future Value of an Annuity
• Investment Returns: Real Rate Of Return and the Inflation Premium, Investment Risk and the Risk Premium, Holding Period Return (HPR), Internal Rate Of Return (IRR)
• Investment Risks and the Risk-Return Tradeoff
• Single Asset Risk: Standard Deviation and Coefficient of Variation
• Portfolio Risks and Returns; Covariance and the Coefficient of Correlation
• Capital Allocation Between A Risk-Free Asset And A Risky Asset
• Beta, Capital Asset Pricing Model (CAPM), and the Security Market Line (SML)
• Efficient Frontier of Portfolios
• Modern Portfolio Theory: the Efficient Frontier, Utility Scores, and Portfolio Betas
• The Single-Index Model For Security Returns
• Arbitrage Pricing Theory (APT); Law Of One Price
• Value at Risk (VaR)
• Portfolio Performance: Measuring Portfolio Returns; Sharpe Ratio, Treynor Ratio, and Jensen Alpha
• Formula Investment Plans: Dollar-Cost Averaging, Constant-Dollar Plan, Constant-Ratio Plan, Variable-Ratio Plan
• Random Walk And Efficient Market Hypotheses
• Market Anomalies
• Behavioral Finance
• Cash Flow

"You can't buy love, but you can pay heavily for it." — Henny Youngman