Chapter 8: Constructing Investment Portfolios
In this section
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Risk and Return: Building a Foundation for Smarter Investing
Understand the core principles of risk and return in investment portfolios, explore the risk-return trade-off, and learn how Canadian regulatory frameworks influence prudent investment choices.
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Economic Conditions in Comparing Returns: Understanding GDP, Interest Rates, and Inflation
Explore how GDP growth, interest rates, inflation, and other economic indicators shape investment returns and inform mutual fund performance comparisons.
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How to Calculate a Return
Master investment return calculations including Simple Rate of Return, Total Return, Annualized Return, TWRR, and MWRR—essential techniques for evaluating portfolio performance in Canada or abroad.
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How to Measure Risk
Learn the most common approaches to measuring investment risk, including standard deviation, beta, value at risk, and the Sharpe ratio, and discover how these metrics fit into a comprehensive portfolio construction strategy.
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What is Portfolio Analysis?
Explore how portfolio analysis unites diversification, correlation, and asset allocation to align investment risk and return with client goals.
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How Are Portfolios Managed? A Guide to Mastering Portfolio Management Strategies in Canada
Explore key principles of portfolio management, including active and passive strategies, the role of the Investment Policy Statement, and the importance of rebalancing to achieve your investment goals in the Canadian market.
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Methods of Analysis for Successful Portfolio Construction
Explore the various methods of analysis—fundamental, technical, quantitative, and more—that guide investment decisions in portfolio construction. From interpreting financial statements to leveraging algorithmic tools, learn how to blend multiple approaches for smarter investments.
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Additional Topics in Constructing Investment Portfolios
Explore strategic and tactical asset allocation, rebalancing methods, ESG factors, and more to enhance your investment portfolio construction expertise.
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