← Investment Analysis and Portfolio Management

The investment process, return and risk

Module 01 / 5 · 60 min · Free preview

Set objectives and constraints in an investment policy statement, then measure return and risk the way an Ethiopian investor actually experiences them: after inflation.

In this module you will learn to

Describe the investment process from objectives and constraints to monitoring
Identify the main institutional and individual investor types in Ethiopia and what drives each
Calculate holding-period return and convert nominal returns to real returns under high inflation
Calculate the standard deviation of returns and explain what it says about risk

Built on

Erudite Africa course specification 2.d: Investment Analysis and Portfolio Management, Levels 1 and 2 (October 2026)
Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
Capital Market Proclamation No. 1248/2021; ECMA Directives No. 980/2024 and No. 996/2024; ESX Rulebook (December 2024)
NBE directives as listed in the lessons: SBB/92/2024, SBB/95/2025, SBB/72/2019, FXD/01/2024, NBE/INT/13/2026; NBE Monetary Policy Committee release No. 7 (July 2026)
NBE financial sector data for FY2024/25 and ESX and ECMA market data, as compiled in Investopia sector research (October 2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.