FINANCE-06 · Advanced · ENGLISH · PLANNED
Trace cash flows, calculate a transparent model, stress-test assumptions and explain risk.
Study time is an initial activity estimate, excluding extra reading, revision and extended laboratory or project work. Videos and question bodies have not been produced by adding this outline.
Complete these courses or demonstrate equivalent knowledge. These are recommended prerequisites, not enforced enrolment locks.
YouTube playlist: ARK Finance | Investments, Asset Pricing and Portfolio Management
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Sign in to save this learning pathPractical outcome: Calculate returns and risk for fictional assets.
Explain holding-period returns using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain arithmetic returns using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain geometric returns using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain volatility using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Use the first concepts from this section. Calculate returns and risk for fictional assets. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain covariance using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain correlation using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain downside risk using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Explain risk premiums using a visual and one worked real-world example. Context: Calculate returns and risk for fictional assets. End with a prediction or check-for-understanding.
Calculate returns and risk for fictional assets. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering Holding-period returns, Arithmetic returns, Geometric returns and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Practical outcome: Construct and critique a small synthetic portfolio.
Explain diversification using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain mean-variance optimisation using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain efficient frontiers using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain risk-free allocation using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Use the first concepts from this section. Construct and critique a small synthetic portfolio. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain capital asset pricing model using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain beta using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain multifactor models using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Explain model limitations using a visual and one worked real-world example. Context: Construct and critique a small synthetic portfolio. End with a prediction or check-for-understanding.
Construct and critique a small synthetic portfolio. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering Diversification, Mean-variance optimisation, Efficient frontiers and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Practical outcome: Write an illustrative investment policy for a fictional institution.
Explain objectives and constraints using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain asset allocation using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain benchmarks using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain rebalancing using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Use the first concepts from this section. Write an illustrative investment policy for a fictional institution. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain performance attribution using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain risk-adjusted performance using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain transaction costs using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Explain fiduciary responsibility concepts using a visual and one worked real-world example. Context: Write an illustrative investment policy for a fictional institution. End with a prediction or check-for-understanding.
Write an illustrative investment policy for a fictional institution. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering Objectives and constraints, Asset allocation, Benchmarks and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Combine all three sections: Write an illustrative investment policy for a fictional institution. Submit an original worked artifact, evidence or tests, assumptions and a reflection. Rubric: correctness, method, practical usefulness, reproducibility and communication. Self-reviewed, not certified.
6–12 balanced questions sampling every section of Investments, Asset Pricing and Portfolio Management, including interpretation, calculation or reasoning, a misconception and a new application. Passing is 70%; review errors before retrying.
Fictional USD budgets, statement analysis, valuation models and risk scenarios. Guided work leads to an independent attempt, with a diagram, explanation, trace, calculation or tested artifact. Question bodies are generated when opened in your private learning path. Programming submissions are stored as text; the platform does not execute submitted code.
Use original or appropriately licensed datasets. Practical science activities use models or supplied data unless a qualified supervisor has reviewed a physical experiment.
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