Overview — Linear Algebra

A portfolio combines several asset returns. A factor model can turn the same asset weights into several exposures. This topic teaches vectors and matrices so you can perform both calculations and check their dimensions. The single primer lesson is enough for readiness; the full Linear Algebra I course is a later extension.

By the end of this topic you should be able to:

• add and scale vectors and compute a dot product;
• read matrix dimensions and multiply a matrix by a vector;
• express a system of linear equations as $\mathbf{A}\mathbf{x}=\mathbf{b}$;
• interpret portfolio return and factor exposure as linear-algebra operations;
• recognise when dimensions or units make an expression invalid.

1. Contents
2. The big picture
3. Diagnostic use