Overview
The contributions made by multiple Nobel laureates in economics during the 1960s-70s revolutionized the investments industry. Although these contributions led to the disciplined, analytical approach the industry adopts today, their associated statistics and performance metrics are widely misunderstood. This seminar explores the investments field’s prevailing methodology and tools stemming from “Modern Portfolio Theory,” with an emphasis on intuition.
- How is return and risk correctly measured and interpreted?
- What are the mathematics that underlie portfolio theory, and how can an improved understanding makes diversification strategies effective?
- How are prominent investments statistics and performance metrics defined and correctly interpreted?
- What does beta actually measure, when it is important, and when is it not?
Faculty
Timothy R. Burch is Associate Professor of Finance at the Miami Herbert Business School and Academic Director of the full-time Master of Science in Finance (MSF) program. His research on mergers and acquisitions, investor behavior in crisis periods, and equity financing is published in leading academic journals, and his current research focuses on mutual funds and asset bubbles. Professor Burch’s industry experience includes full-time work as an actual analyst at a global pension consulting firm, serving as a board member of a mutual fund family, and providing a wide variety of financial consulting services.
