APMA – Accredited Portfolio Management Advisor: Portfolio Theory, Risk, Investment
Strategy & Performance Evaluation
Systematic Risk - ANS ✔✔no diversifiable component of total risk AKA volatility or "beta" σ
Unsystematic Risk - ANS ✔✔diversifiable component of total risk, including: business, financial,
and country risk.
weighted average return - ANS ✔✔
standard deviation (total risk) - ANS ✔✔combined systematic and unsystematic risk
mean return - ANS ✔✔
coefficient of variation - ANS ✔✔an investment risk (standard deviation) per unit of expected
return
Covariance - ANS ✔✔The tendency of the returns of two assets to move, over time, in the same
or in a different direction
correlation coefficient - ANS ✔✔the statistical measurement of the strength of the relationship
of the returns of two assets (standardized version of covariance
coefficient of determination - ANS ✔✔AKA R²
Beta Coefficient - ANS ✔✔
required return - ANS ✔✔the minimum acceptable return on an investment
Strategy & Performance Evaluation
Systematic Risk - ANS ✔✔no diversifiable component of total risk AKA volatility or "beta" σ
Unsystematic Risk - ANS ✔✔diversifiable component of total risk, including: business, financial,
and country risk.
weighted average return - ANS ✔✔
standard deviation (total risk) - ANS ✔✔combined systematic and unsystematic risk
mean return - ANS ✔✔
coefficient of variation - ANS ✔✔an investment risk (standard deviation) per unit of expected
return
Covariance - ANS ✔✔The tendency of the returns of two assets to move, over time, in the same
or in a different direction
correlation coefficient - ANS ✔✔the statistical measurement of the strength of the relationship
of the returns of two assets (standardized version of covariance
coefficient of determination - ANS ✔✔AKA R²
Beta Coefficient - ANS ✔✔
required return - ANS ✔✔the minimum acceptable return on an investment
