Financial Engineering & Portfolio Theory -CM2 Actuarial Exam - Udemy

Financial Markets

We look at various markets such as the Stock Market, the Bond Market, the Derivative Market as well as Risk markets.

Efficient Market Hypothesis

We consider the Strong, Semi and Weak form of the Efficient Market Hypothesis as well as the evidence for and against each one.

Can you Beat the Market?

We compare the success of Warren Buffet vs the success of John C Bogle

Active vs Passive Strategies

We compare two investment philosophies and consider the problems with each

Covid-19 Investment Strategies

I share my own investment strategies before and after Covid-19

What Caused the Great Recession

We look at what caused the global recession in 2008

Irrational Behaviour

We play the St Petersburg Paradox and consider if our decisions can be irrational

Consumer Choice Theory

We look at indifference curves and budget lines to make decisions around bundles.

Utility Theory

We make observations about the utility of money and consider various attitudes towards risk.

Axioms of Utility

We look at Completeness, Transitivity, Continuity and Independence

Expected Utility Theory

We consider consumer choice theory with uncertainty

Stochastic Dominance

We look at Absolute, First Order and Second Order Dominance

Behaviour Economics

Heuristics

Framing

Herd Instinct

Anchoring

Myopic Loss Aversion

Mental Accounting

Bias - (Self Serving, Confirmation, Availability and Familiarity)

Story Believing

How to Fight Irrationality

Variance and Semi Variance

Shortfall Probability

Value at Risk

Expected Shortfall (Tail VaR)

Relationship between Risk Measures and Utility Functions

Introduction to Portfolio Theory

Introduction to Mean Variance Portfolio Theory

Assumptions

Opportunity Set & Efficient Frontier

Diversification Benefit

Optimal Portfolio