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Investment Principles and Risk - R02
Please note that our material has now been updated and is now available as an MP3 download suitable for the 2012/13 syllabus (exams after 1st September). Please click on the "Buy Now" button below to purchase. CDs are no longer available.
On Download 
Price: £40
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Size: 12 modules, approximately 4 1/2 hours of material
Download time: approx 6 minutes over high speed broadband
Please note: After purchase you will receive an email that includes the download link. If this doesn't appear in your inbox within a few minutes please check your spam folder.
The key areas of each module is shown below.
| Module 1 (12 minutes) RO2: the exam and preparing for it |
Regulated Diploma exam structure . The RO2 exam . multiple-choice questions . exam preparation . 7 golden rules for the exam |
| Module 2 (22 minutes) Asset classes - part 1 |
Cash: risks, types of products . Fixed interest securities: bond markets, how bonds are issued . measuring bond performance . market risk . volatility . yield curves |
| Module 3 (26 minutes) Asset classes - part 2 |
Equities: types of share and dealing . private equity . measuring equity performance . indicies . Property: residential property, commercial property and property investment vehicles . Alternative investments: works of art and commodities |
| Module 4 (19 minutes) The economic environment and its impact on asset classes |
Economic trends . world globalisation . economic cycles . fiscal and monetary policy . money supply . inflation . interest rates . balance of payments . the effects on investments |
| Module 5 (24 minutes) The main investment theories |
Modern portfolio theory (risk, volatility, hedging and correlation, the efficient frontier) . capital asset pricing model (beta) . multifactor models . risk adjusted returns (sharpe ratio, alpha, information ratio) . the efficient market hypothesis . behavioural finance . the time value of money . compound interest |
| Module 6 (13 minutes) Risk and investment performance |
Risk and return objectives . types of risk . diversification . gearing |
| Module 7 (27 minutes) Investment products - Part 1 |
Direct v indirect investments . OIECS and unit trusts . offshore funds (reporting / non-reporting funds) . investment trusts (split caps, warrants, gearing) |
| Module 8 (36 minutes) Investment products - Part 2 |
Life assurance-based investments . ETFs . property-based investments (property company shares, REITs, insurance company property funds, and property unit trusts or investment trusts) . EIS . VCTs . broker funds . derivatives . hedge funds . structured products |
| Module 9 (12 minutes) The investment advice process | Providing advice to clients . know your customer requirements - risk, returns and other constraints |
| Module 10 (16 minutes) Principles of investment planning |
Asset allocation and risk . portfolio optimisation . stochastic modelling . strategic and tactical asset allocation . portfolio management methods . tax wrappers |
| Module 11 (17 minutes) The performance of investments |
Measuring portfolio performance . choice of fund managers . portfolio reviews and re-balancing |
| Module 12 (20 minutes) Crammer module |
This consists of the summaries of the previous modules. |