CME (Part 2): Forecasting Asset Class Returns

LEARNING OUTCOMES

The candidate should be able to:

• discuss approaches to setting expectations for fixed-income returns

• discuss risks faced by investors in emerging market fixed-income securities and the country risk analysis techniques used to evaluate emerging market economies

• discuss approaches to setting expectations for equity investment market returns

• discuss risks faced by investors in emerging market equity securities

• explain how economic and competitive factors can affect expectations for real estate investment markets and sector returns

• discuss major approaches to forecasting exchange rates

• discuss methods of forecasting volatility

• recommend and justify changes in the component weights of a global investment portfolio based on trends and expected changes in macroeconomic factors