Economics: Portfolio Selection

<p>You will learn how to price financial assets and how to structure portfolios of financial equities based on the trade-off of risk and returns as well as other non-pecuniary motives.</p><p>You learn how to build a financial portfolio by combining different stocks of equity to optimise the trade-off between risk and return. We explore how to measure and evaluate the risk and performance of financial investments. To achieve this, we involve several different models to empirically estimate the fair return rates and use them to find the fair price of stocks. </p><p>We look at common mistakes people make when investing (behavioural finance) and how these affect the market. We compare it to a more traditional view of an efficient stock market. Finally, you get tools to evaluate investment decisions that take the Environmental, Social and Governance (ESG) framework into account. </p><p><br/></p>