Mastering Portfolio Management: Practice Problems & Key Concepts, Risks, and Strategies

Join us in this comprehensive video as we tackle multiple choice questions on portfolio management, risk management, and corporate finance. Learn about systematic vs. unsystematic risks, diversification theory, the importance of correlation coefficients, and how to calculate weighted averages for expected returns and beta. Discover how to determine a company's weighted average cost of capital (WACC) using the Capital Asset Pricing Model (CAPM) and understand the impact of biases such as overconfidence, loss aversion, framing, anchoring, and confirmation bias on financial decision-making. Perfect for finance students and professionals looking to solidify their knowledge in these areas!
00:00 Introduction and Overview

00:11 Understanding Systematic vs. Unsystematic Risk
01:02 Diversification Theory Explained
04:29 Calculating Portfolio Expected Return
05:19 Standard Deviation and Risk Mitigation
07:13 Beta and Weighted Average Cost of Capital (WACC)
08:36 Capital Asset Pricing Model (CAPM)
13:28 Biases in Financial Decision Making
16:32 Conclusion and Final Thoughts