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Managing my investments
Managing my investments

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Week 3 round-up

It has been a very full week again and we’ve covered some difficult concepts, but these concepts are key to effective investment management.

Understanding portfolio theory, CAPM and the Efficient Markets Hypothesis, as well as concepts like Random Walk theory, pound cost averaging and chartism are all important component parts of a rounded knowledge about how investment markets work.

You’ll have seen as well how these theories apply in the practical world of investment management. All this helps to establish your own strategy for managing your investments.

Don’t forget to continue with Activity 2.4 [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] and check the prices for the selected companies once a week and enter their level in the Market shares tracking worksheet. Remember, you can follow these shares using the BBC Market Data tool, or by picking up a newspaper which focuses on financial markets.

Next week, you’ll turn to the subjects of investment strategies in practice and how to judge the performance of investments – in particular, the performance of those managing investment funds. In moving to these subjects, we arrive at the fourth stage of our investment management model – the ‘review’ stage.

You can now go to Week 4.