This Q&A podcast focuses on modern portfolio theory and asset pricing models. The speaker begins by reviewing a recent quiz and outlining the course structure before discussing current market events and his own portfolio performance, highlighting the use of leverage and its inherent risks. The main portion of the podcast delves into modern portfolio theory (MPT), explaining its mathematical framework and demonstrating its application using Excel. The speaker then introduces the Capital Asset Pricing Model (CAPM), explaining its assumptions, conclusions, and limitations, and finally discusses the Arbitrage Pricing Theory (APT) as a more nuanced approach to asset pricing, incorporating multiple risk factors. The podcast concludes with a discussion of various factor models, emphasizing the practical application of these models for portfolio construction and risk management, illustrated by examples using Portfolio Visualizer.
