Following a general introduction we will analyze and discuss portfolio theory and its assumptions. To quantify investment success, applicable performance measures are essential. In this context, benefits and problems of benchmarks will be discussed. Furthermore, we will highlight the relevant institutional parameters for Private Banking. Finally, we focus on implementing these learnings in practice by reviewing empirical studies: how can customers be convinced of a prudent asset allocation, although this may contradict their intuition (Behavioral Finance). To complement theory, we will include practitioners' lectures to various aspects of Private Banking.

In this lecture we analyze and discuss different aspects which are essential and useful for advising clients in the scope of Private Banking. This includes especially how prudent advisory should be conducted. The goal is to provide the necessary theoretical and empirical knowledge within the course of this lecture. Additionally, basic negotiation skills will be taught. Having taken this lecture, students should also be capable of understanding and critically questioning the recent academic literature on this topic.