Portfolio Risk Analysis: Normal Distribution and Value at Risk

Understanding and quantifying financial risk is essential for effective portfolio management and quantitative finance. This text-based course guides you step by step through core probability concepts, portfolio variance, and modern risk measurement techniques. You will build a solid quantitative foundation by reading clear explanations and working through practical finance examples, developing the confidence to evaluate portfolio performance and potential downside losses. What you'll learn: - Understand foundational statistical concepts including expected return, variance, and standard deviation - Apply normal distribution properties and z-scores to financial asset returns - Calculate multi-asset portfolio standard deviation and evaluate diversification effects - Measure portfolio downside exposure using parametric Value at Risk (VaR) - Compare parametric VaR with historical simulation and understand basic stress testing concepts - Interpret risk metrics to make informed portfolio management and risk allocation decisions The course begins with core statistical terminology and probability foundations before progressing to multi-asset portfolio calculations and professional risk measurement techniques. This course is designed for aspiring financial analysts, investors, and exam candidates seeking a structured, beginner-friendly introduction to quantitative portfolio risk without requiring advanced mathematical prerequisites. Start reading today to master the mathematical foundations of portfolio risk analysis.