## Overview

Our free ACCA FM Risk and Return, Portfolio Theory, and CAPM notes cover everything you need to know for this module. From measuring risk and return to portfolio theory, and CAPM and required return, we've got you covered. Whether you're intensively reviewing or looking to solidify specific concepts, these notes provide added peace of mind, knowing that you have a comprehensive resource to help consolidate and revise effectively for ACCA FM. Think something could be better? [Give us a shout on our contact page](/contact), and we'll take a look.

We've created detailed study guides for all ACCA FM topics. Check out our other free notes below:

- [Financial Management and the Environment](./acca-fm-financial-management-and-the-environment)
- [Risk and Return, Portfolio Theory, and CAPM](./acca-fm-risk-and-return-portfolio-theory-and-capm)
- [Working Capital Management](./acca-fm-working-capital-management)
- [Investment Appraisal](./acca-fm-investment-appraisal)
- [Cost of Capital and Capital Structure](./acca-fm-cost-of-capital-and-capital-structure)
- [Business Finance Sources](./acca-fm-business-finance-sources)
- [Dividend Policy and Share Transactions](./acca-fm-dividend-policy-and-share-transactions)
- [Business Valuations](./acca-fm-business-valuations)
- [Foreign Exchange and Interest Rate Risk Management](./acca-fm-foreign-exchange-and-interest-rate-risk-management)
- [Treasury and Short-term Financing](./acca-fm-treasury-and-short-term-financing)

## 1. Measuring risk and return

- [Expected return, variance, and standard deviation](./acca-fm-measuring-risk-and-return-expected-return-variance-and-standard-deviation)
- [Covariance, correlation, and diversification](./acca-fm-measuring-risk-and-return-covariance-correlation-and-diversification)
- [Systematic vs unsystematic risk](./acca-fm-measuring-risk-and-return-systematic-vs-unsystematic-risk)

## 2. Portfolio theory

- [Efficient frontier and dominance](./acca-fm-portfolio-theory-efficient-frontier-and-dominance)
- [Optimal portfolios and risk–return trade-off](./acca-fm-portfolio-theory-optimal-portfolios-and-risk-return-trade-off)
- [Beta estimation and interpretation](./acca-fm-portfolio-theory-beta-estimation-and-interpretation)

## 3. CAPM and required return

- [Security market line and expected return](./acca-fm-capm-and-required-return-security-market-line-and-expected-return)
- [Alpha, pricing errors, and limitations](./acca-fm-capm-and-required-return-alpha-pricing-errors-and-limitations)
- [Using CAPM in investment appraisal](./acca-fm-capm-and-required-return-using-capm-in-investment-appraisal)

Free ACCA FM Risk and Return, Portfolio Theory, and CAPM Study Guide