Overview
What this challenge is about.
Select 15 stocks from 20 candidates, compute efficient frontier and CAPM metrics, then recommend a max-Sharpe portfolio. Earn a verifiable certificate.
The scenario
The fund 'EcoThreads Capital' focuses on companies with strong ESG credentials in fashion, including Patagonia, Adidas, and Stella McCartney. They require a diversified portfolio with a target volatility of 15%.
The Brief
What you'll do, and what you'll demonstrate.
Construct an optimal portfolio of 15 sustainable fashion stocks that maximizes risk-adjusted return, using mean-variance optimization and CAPM analysis.
Earning criteria — what you'll demonstrate
- Apply mean-variance portfolio theory to construct efficient portfolios
- Use CAPM to estimate systematic risk and expected return of individual stocks
- Calculate and interpret performance metrics (Sharpe, Treynor, Jensen)
- Optimize portfolio under a volatility constraint
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Investments and Asset Pricing
Bachelor · Finance
Strong alignment
This challenge maps to Investments and Asset Pricing at the Bachelor level. It sharpens the same practical skills your coursework expects — but in a real industry context with actual constraints and deliverables.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Mean Variance Optimization
Apply mean variance optimization to solve real industry problems and demonstrate production-level capability.
- Efficient Frontier
Apply efficient frontier to solve real industry problems and demonstrate production-level capability.
- Capm
Apply capm to solve real industry problems and demonstrate production-level capability.
- Sharpe Ratio
Apply sharpe ratio to solve real industry problems and demonstrate production-level capability.
- Portfolio Construction
Apply portfolio construction to solve real industry problems and demonstrate production-level capability.
- Risk Management
Identify, assess, and mitigate risks across business operations and projects.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles: