• Understand the fundamentals of risk and return
• Describe procedure for assessing and measuring the risk of a single asset
• Review the procedure to assess and measure the risk-return of a portfolio
• Discuss the selection of the optimal portfolio based on the Markowitz model
• Explain the capital asset pricing model (CAPM) as a framework for basic risk-return trade-off
• Examine the factors having a bearing on extended CAPM
• Describe the arbitrage pricing theory (APT) as a model of security/asset pricing as an alternative to CAMP
