PFP 475 - Financial Planning Investments

• Describe and compare the investment characteristics of asset classes
• Explain the appropriate use for each asset class and investment vehicle based investment goals.
• Describe tax implications of holding and disposing of various security types or asset classes
• Identify, measure, and differentiate between types of investments risks.
• Explain the impact of low-probability economic events on portfolio design.
• Estimate the expected risk and return using the Capital Asset Pricing Model for securities and portfolios
• Calculate modern portfolio theory statistics in the assessment of securities and portfolios.
• Explain the use of return distributions in portfolio structuring
• Apply advanced analytic techniques to portfolio analysis.
• Identify, measure, and interpret various approaches to determining investment returns.
• Calculate and interpret risk-adjusted performance measures
• Construct a portfolio associated with a specific investment goal.
• Explain the role of portfolio rebalancing.
• Recommend an asset allocation strategy consistent with a specified risk tolerance
• Value a bond using discounted cash flow and explain how interest rates affect bond values.
• Estimate the value of a stock using discounted cash flow, the CAPM, and price multiples.
• Differentiate between fundamental and technical analysis.
• Develop alternative strategies to meet investment objectives, time horizons, and risk tolerances.
• Select an appropriate benchmark for assessing the value of portfolio management services.
• Develop an appropriate Investment Policy Statement (IPS) for a client.
• Apply duration and convexity in constructing a fixed income portfolio.
• Construct a tax-efficient diversified portfolio based on a stated goal, risk preference and time horizon.
• Calculate and communicate a client’s portfolio performance using different risk and return measures
• Explain the role of alternative investment strategies such as buy-and-hold, immunization, core and satellite, passive (indexed) and active management techniques such as tactical allocation, market timing, and sector rotation
• Evaluate how options and futures support investment risk management purposes.
• Define and describe what qualifies as an alternative investment.
• Explain asset class and describe the basic differences between the traditional asset classes and alternative asset classes
• Explain the primary rationale and uses for alternative asset classes
• Explain the potential advantages and disadvantages of utilizing alternative investment strategies
• Explain how the incorporation of alternatives asset classes can affect both absolute and risk-adjusted portfolio returns