R02 - Investment Principles and Risk

R01 Investment Principles and RiskInvestment Principles and Risk - R02

Please note that our R02 material is suitable for exams up to 31st August 2014 and is available as an MP3 download by clicking on the Buy Now button below.  Material will be updated over the summer for post 1st September exams, and should be available here in late August.


On Download J01

Price: £41

To purchase this Audio Pack on download online please click here

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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.


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