This course consists of two modules.  Module 1 looks at indexing, a strategy adopted by the passive management community and then moves on to discuss the market timing mentality of active portfolio managers. It also examines alternative approaches that are blurring the traditional distinctions.

Module 2 looks at a number of well-known rules that are used to choose between risky investments.  It is therefore imperative that you understand all these rules, any assumptions underlying them and their relative advantages and disadvantages.

On completion of this course, you will be able to:

- Identify the types and features of passive portfolio management
- Recognize the techniques used in active portfolio management
- Identify the investment strategies that are blurring the lines between passive and active portfolio management approaches
- Calculate the Treynor ratio and explain how it differs to the Sharpe ratio 
- Compare Jensen's alpha measure with both the Sharpe and Treynor ratios 
- Describe the Treynor-Black ratio and the RAROC measure

Module 1: Portfolio Management - Passive vs. Active Approaches
Topic 1: Passive Portfolio Management 
Topic 2: Active Portfolio Management 
Topic 3: Variations on Active/Passive Management

Module 2: Portfolio Theory - Performance Measurement Models 
Topic 1: The Sharpe Ratio 
Topic 2: The Treynor Ratio
Topic 3: Jensen’s Alpha
Topic 4: Other Performance Measures