The canonical Investment Management curriculum, taught through hands-on tools instead of dense textbook chapters. Risk and return, diversification, optimal portfolios, equilibrium pricing, and risk-adjusted performance evaluation — in one connected journey.
Undergrad / MBA / CFA Level I / curious self-learners.
By the end you will…
Compute risk and return for any asset or portfolio using probabilistic and historical data.
Build optimal portfolios using the Markowitz mean-variance framework.
Apply the CAPM and Security Market Line to spot mispriced assets.
Evaluate any portfolio's performance using Sharpe, Treynor, Jensen, and M².
Sample fund vs benchmark — see who actually delivered after risk.
Sharpe
0.92
vs 0.71
Treynor
0.082
vs 0.064
Jensen α
+1.8%
vs —
Info Ratio
0.42
vs —
Apply what you learned
Real-world scenarios that pull together the path. Each links back to the Labs you just used.
Case Study
Building a $10K starter portfolio for a 25-year-old
Maya is 25, earns a stable salary, and just finished an emergency fund. She has $10,000 to invest with a 30+ year horizon. Walk through the path: her risk score lands her in 'Aggressive' (70% stocks / 15% bonds / 10% alternatives / 5% crypto). Run the Two-Asset lab on a stock/bond core to see how diversification cuts σ from ~18% to ~13%. Plot the Efficient Frontier on SPY+AGG+GLD and pick the tangency portfolio for the maximum Sharpe. Apply CAPM with β=1.0 and a 6% premium → an 10% expected return. Over 30 years that compounds the $10K to roughly $175K (real terms, before fees) — the textbook power of long-horizon compounding combined with mean-variance optimization.
Why my fund manager underperformed: a Sharpe-Treynor postmortem
Active fund 'Alpha Growth' returned 11.2% annualized vs the S&P at 10.5% — sounds like alpha. But the fund's σ was 22% (vs benchmark 16%) and β was 1.4. Run the numbers: Sharpe = (11.2 − 4) / 22 = 0.33 vs benchmark Sharpe = (10.5 − 4) / 16 = 0.41. The fund actually underperformed risk-adjusted. Treynor = (11.2 − 4) / 1.4 = 5.1% vs benchmark 6.5% — same story. Jensen's α = 11.2 − [4 + 1.4 × (10.5 − 4)] = −1.9%. Three different measures, one verdict: the manager added beta exposure but no skill. Use the Performance Lab to spot this trap before paying 1.5% in fees.
Indonesia ETF vs S&P 500 for an Indonesian investor
An Indonesian investor weighs SPY (USD-denominated S&P 500) against an IDX-listed Indonesia broad-market ETF. SPY's 10y annualized return is ~12% in USD; IHSG's is ~6.5% in IDR. But IDR has depreciated ~3% per year against USD, so SPY's return in IDR terms is ~15%. Risk-free rate in Indonesia (BI 7DRR) is 6% vs US 4%. Run CAPM with the local market premium for each, then compute Sharpe on IDR-denominated returns: SPY's currency-adjusted Sharpe is ~0.55, IHSG ~0.10. Lesson: home-bias costs Indonesian investors a lot. The Asset Allocation Wizard's Indonesia mode handles this currency layer automatically.