Financial Engineering & Portfolio Theory -CM2 Actuarial Exam

By MJ the Fellow Actuary
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English
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Finance Cert & Exam Prep
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Financial Engineering & Portfolio Theory -CM2 Actuarial Exam
1โ€ฏ846
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5 hours
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Jul 2022
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$22.99
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Why take this course?

๐ŸŽ“ Financial Engineering & Portfolio Theory -CM2 Actuarial Exam

By MJ the Fellow Actuary ๐Ÿš€

Section 1 - Introduction to Financial Markets and Market Efficiency ๐Ÿ“Š

Dive into the world of financial markets with Michael Jordanc, where we'll explore the Stock Market, Bond Market, Derivative Market, and Risk markets. Discuss the intricacies of each and understand their roles in the financial ecosystem.

  • Financial Markets ๐Ÿฆ

    • Explore the different types of markets and their significance in the financial system.
  • Efficient Market Hypothesis (EMH) ๐Ÿ“ˆ

    • Delve into the Strong, Semi, and Weak form of EMH.
    • Analyze the evidence supporting and challenging each version.
  • Can You Beat the Market? ๐Ÿง

    • Assess the investment success of Warren Buffet vs John C Bogle.
    • Explore the philosophies behind Active vs Passive Strategies.
  • Covid-19 Investment Strategies ๐Ÿฆ 

    • Gain insights into MJ's personal strategies before and after the pandemic.
  • What Caused the Great Recession? ๐Ÿ—๏ธ

    • Uncover the root causes of the global recession in 2008.

Section 2 - Utility Theory ๐ŸŽญ

Understand how individuals make decisions and the theories behind their choices. From Irrational Behaviour to Axioms of Utility, this section covers it all.

  • Irrational Behaviour ๐Ÿง 

    • Engage with the St Petersburg Paradox and question the rationality of our decisions.
  • Consumer Choice Theory ๐Ÿ›๏ธ

    • Analyze indifference curves and budget lines to understand decision-making around bundles.
  • Utility Theory ๐Ÿ“‰

    • Observe the utility of money and explore different attitudes towards risk.
  • Axioms of Utility ๐Ÿ”

    • Examine Completeness, Transitivity, Continuity, and Independence axioms.
  • Expected Utility Theory ๐ŸŽฒ

    • Consider how consumer choice theory works with uncertainty in mind.
  • Stochastic Dominance ๐Ÿ†

    • Learn about Absolute, First Order, and Second Order Dominance concepts.

Section 3 - Behavioural Economics ๐Ÿ‘ซ

Discover the psychological aspects that influence economic decision-making. From heuristics to biases, this section will help you understand the cognitive factors at play.

  • Heuristics ๐Ÿค”

    • Understand how mental shortcuts can lead to rationalization.
  • Framing ๐Ÿ“

    • Learn about how presentation influences decision-making.
  • Herd Instinct ๐Ÿ‘

    • Explore the tendency to follow trends and behaviors of a group.
  • Anchoring ๐ŸŒ€

    • See how first impressions can anchor our decisions.
  • Myopic Loss Aversion ๐ŸŽฏ

    • Understand the fear of losses and its impact on decision-making.
  • Mental Accounting ๐Ÿงฎ

    • Examine how people categorize money in their minds.
  • Bias - (Self Serving, Confirmation, Availability, and Familiarity) ๐Ÿ‘€

    • Identify the various cognitive biases that can affect decision-making.
  • Story Believing ๐Ÿ“–

    • Discover how narratives can shape our economic perceptions.
  • How to Fight Irrationality โš”๏ธ

    • Learn strategies to combat irrational decisions.

Section 4 - Risk Measures ๐Ÿ”ฎ

Measure risk like a pro with this section, learning the tools and concepts necessary for effective risk management.

  • Variance and Standard Deviation ๐Ÿ“Š

    • Understand the mathematical underpinnings of these key risk measures.
  • Value at Risk (VaR) โŒ›๏ธ

    • Explore how VaR is calculated and used to measure market risk.
  • Credit Risk and Liquidity Risk ๐Ÿฆ

    • Delve into the specifics of credit and liquidity risks in financial markets.

Section 5 - Portfolio Theory and Diversification ๐ŸŒ

Learn how to build a robust portfolio that maximizes returns while minimizing risk through diversification.

  • Diversification Benefit ๐ŸŒฑ

    • Understand the concept of diversification and its benefits in reducing unsystematic risk.
  • Optimal Portfolio ๐ŸŽฏ

    • Learn how to construct an efficient frontier and find the optimal portfolio.

Section 6 - Capital Asset Pricing Model (CAPM) ๐Ÿ“Š

Cap off your learning with the Capital Asset Pricing Model, a cornerstone in understanding the relationship between risk and expected return for investments.


Prepare to conquer the CM2 Actuarial Exam with confidence as you delve into these foundational concepts of financial engineering and portfolio theory. With Michael Jordanc's expertise, you'll be well-equipped to navigate the complexities of finance and make informed investment decisions. ๐ŸŒŸ

Ready to embark on this journey? Let's get started! ๐Ÿš€๐Ÿ’ช

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