This unit offers a primer in risk diversification in financial markets and assets. It elaborates on its impact onto the portfolio building process and its property to enable risk management and reduction.

What you will learn

By the end of this unit, you will be able to:

  1. Assess the functioning of financial markets from the viewpoint of risk diversification.
  2. Elaborate on distinctive classes of financial assets and categorize them in terms of their risk management properties.
  3. Underline that “putting all eggs in one basket’’ entails risky behaviour under uncertainty.
  4. Employ and critically evaluate distinctive relevant financial ratios used to classify distinctive financial assets.
  5. Formulate a rationale on investment portfolio building, based on risk diversification,
  6. Illustrate some fundamental understanding of the functioning of stock markets and awareness of financial forecasting methods and cautious interpretations.

Course Info

Length: One 1 hour video

Institution: University of Glasgow

Level: medium

Effort: 5 hours

Schedule: Self-paced