Risk Factor Models

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01. Intro
02. install libraries
03. Motivation for Risk Factor Models
04. Historical Variance Exercise
05. Factor Model of Asset Return
06. Factor Model of Asset Return Exercise
07. Factor Model of Portfolio Return
08. Preview of Portfolio Variance Formula
09. Factor Model of Portfolio Return Exercise
10. Variance of one stock
11. Taking constants out of Variance and Covariance (optional)
12. Variance of 2 stocks part 1
13. Variance of 2 stocks part 2
14. Covariance Matrix of Assets Exercise
15. Portfolio Variance using Factor Model
16. Portfolio Variance Exercise
17. Types of Risk Models
18. Interlude

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03. Motivation for Risk Factor Models

M4 L2A 02 Motivation For Risk Factor Model V2

Covariance Matrix of Assets

We can organize the asset variances and covariances into a matrix.

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