Investments I: Fundamentals of Performance Evaluation
- 4.7
-
![]()
![]()
![]()
![]()
![]()
Course Summary
This course on Investments Fundamentals is designed to give students an understanding of the basics of investing and how to make informed investment decisions. The course covers topics such as stocks, bonds, mutual funds, and portfolio management.Key Learning Points
- Learn how to make informed investment decisions
- Understand the basics of stocks, bonds, mutual funds, and portfolio management
- Gain practical knowledge that can be applied in real-world investment scenarios
Job Positions & Salaries of people who have taken this course might have
- Financial Analyst
- USA: $60,000 - $100,000
- India: ₹500,000 - ₹1,200,000
- Spain: €30,000 - €60,000
- Investment Banker
- USA: $100,000 - $200,000
- India: ₹1,200,000 - ₹3,000,000
- Spain: €60,000 - €120,000
- Portfolio Manager
- USA: $80,000 - $150,000
- India: ₹800,000 - ₹2,000,000
- Spain: €40,000 - €90,000
Related Topics for further study
Learning Outcomes
- Understand the basics of various investment options
- Learn how to analyze investment opportunities
- Develop practical skills for making informed investment decisions
Prerequisites or good to have knowledge before taking this course
- Basic understanding of financial concepts
- Familiarity with financial markets and economic indicators
Course Difficulty Level
BeginnerCourse Format
- Online Self-paced Course
- Video Lectures
- Interactive Quizzes
- Real-world Case Studies
Similar Courses
- Financial Markets
- Introduction to Investments
- Investment Management
Related Education Paths
Related Books
Description
In this course, we will discuss fundamental principles of trading off risk and return, portfolio optimization, and security pricing. We will study and use risk-return models such as the Capital Asset Pricing Model (CAPM) and multi-factor models to evaluate the performance of various securities and portfolios. Specifically, we will learn how to interpret and estimate regressions that provide us with both a benchmark to use for a security given its risk (determined by its beta), as well as a risk-adjusted measure of the security’s performance (measured by its alpha). Building upon this framework, market efficiency and its implications for patterns in stock returns and the asset-management industry will be discussed. Finally, the course will conclude by connecting investment finance with corporate finance by examining firm valuation techniques such as the use of market multiples and discounted cash flow analysis. The course emphasizes real-world examples and applications in Excel throughout. This course is the first of two on Investments that I am offering online (“Investments II: Lessons and Applications for Investors” is the second course).
Outline
- Course Overview
- Course Introduction
- Learn on Your Terms
- About this Course: Ratings and Reviews
- Syllabus
- Video Lecture Transcripts
- Scott's Advice on How to View and Take This Course
- Excel Instructions for Installing Solver and Data Analysis
- Options for Completing Assignments without Excel
- About the Discussion Forums
- Getting to Know Your Classmates
- Learn More About Flexible Learning Paths
- Orientation Quiz
- Module 1: Investments Toolkit and Portfolio Formation
- Objectives and Overview
- Objectives and Assumptions of Classical Finance
- Why Discount?
- Different Return Measures
- Firm Characteristics Relevant for Investments
- Zero-Cost Portfolio
- Statistical Techniques & Excel
- What We've Learned
- Historical Returns in the U.S.
- Return and Risk: Intro to Portfolios
- Objectives and Source of Data for Examples
- Asset Allocation with One Risky and One Risk-Free Asset
- Asset Allocation with Two Risky Assets
- Real-World Example of a Dominated Asset
- What We've Learned
- Module 1 Review
- Like this course? Learn more with the iMBA! (optional)
- OPTIONAL and UNGRADED ASSIGNMENT 1: Portfolio Choice When Change Correlations
- OPTIONAL: DISCUSSION OF ASSIGNMENT 1: Portfolio Choice When Change Correlations
- OPTIONAL: Objectives
- OPTIONAL: Example 1: Calculating Efficient Portfolios of Risky Assets
- OPTIONAL: Example 2: Calculating Efficient Portfolios of Risky Assets
- OPTIONAL: What We've Learned
- OPTIONAL and UNGRADED ASSIGNMENT 2 (Lesson 1-8): Calculating More Efficient Portfolios
- OPTIONAL: DISCUSSION OF OPTIONAL and UNGRADED ASSIGNMENT 2 (Lesson 1-8): Calculating More Efficient Portfolios
- Module 1 Overview
- Module 1 Readings
- Module 1 Spreadsheets
- Module 1 Quiz
- Module 2: Motivating, Explaining, & Implementing the Capital Asset Pricing Model (CAPM)
- Objectives and Overview
- Objectives
- Final General Portfolio Example and Tangency Portfolio
- Two-Fund Separation Theorem and Applications
- What We've Learned
- Examples of Reducing Portfolio Risk
- Objectives
- Development of the CAPM
- The CAPM and BETA
- The CAPM and ALPHA
- What We've Learned
- Objectives
- Practice Problem & Introduction to Interpreting CAPM Regressions
- CAPM Example 1: Coca Cola
- CAPM Example 2: Balanced Fund
- How to Estimate CAPM and What We've Learned
- PREPARING for Evaluation of the Small-Value Stock Investment Strategy, 1927-2014
- RESULTS from Evaluation of the Small-Value Stock Investment Strategy, 1927-2014
- Module 2 Review
- ASSIGNMENT 3 (Lesson 2-7): Analyzing & Identifying Three Mystery Securities
- DISCUSSION OF ASSIGNMENT 3 (Lesson 2-7): Analyzing & Identifying Three Mystery Securities
- Module 2 Overview
- Module 2 Readings
- Module 2 Spreadsheets
- Module 2 Quiz
- Module 3: Testing the CAPM, Multifactor Models, & Market Efficiency
- Objectives and Overview
- Objectives and Uses of CAPM
- OPTIONAL: Testing the CAPM
- OPTIONAL: Defending the CAPM
- Market Anomalies: Small-Firm and Value Effects
- Interpretation of Market Anomalies
- OPTIONAL: Investigating "Long Value Short Growth" Strategy
- What We've Learned
- Objectives
- Multi-Factor Models
- Matching
- What We've Learned
- Market Efficiency
- Module 3 Review
- ASSIGNMENT 4 (Lesson 3-7): Analysis and Recommendation of 50 Balanced Funds, 1995-2014
- DISCUSSION OF ASSIGNMENT 4 (Lesson 3-7): Analysis and Recommendation of 50 Balanced Funds, 1995-2014
- OPTIONAL: Use Domestic or Global Factors?
- OPTIONAL: Return-Risk Model Used by Chief Financial Officers (CFOs)
- Module 3 Overview
- Module 3 Readings
- Module 3 Spreadsheets
- Module 3 Quiz
- Module 4: Investment Finance and Corporate Finance: Firm Valuation
- Objectives and Overview
- Objectives
- Formula for Valuing a Perpetuity
- Real-World Examples and Perpetuity Problems
- What We've Learned
- Objectives
- Market Multiples Approach to Valuation
- Income Approach to Valuation: Introduction
- Income Approach to Valuation: Discount Rate
- Income Approach to Valuation: Cash Flows
- Income Approach to Valuation: Terminal Value, Price-to-Earnings Ratio, & Discounting of Cash Flows
- Fudge Factors to Valuation and What We've Learned
- Objectives
- Defined-Benefit (DB) Pension Plan Liabilities and Their Valuation
- Valuing a Stream of Fixed Liabilities
- Investment Policy of Pension Benefit Guaranty Corporation (PBGC)
- What We've Learned
- Module 4 Review
- OPTIONAL: Objectives
- OPTIONAL: Microsoft Example
- OPTIONAL: Betas of Small & Large Firms and Betas Across Industries
- OPTIONAL: What We've Learned
- OPTIONAL: Caution in Projecting Firm Growth Rates
- OPTIONAL: Objectives
- OPTIONAL: Valuation of Google at Its Initial Public Offering (IPO): First Attempt
- OPTIONAL: Valuation of Google at Its Initial Public Offering (IPO): Digging Deeper
- OPTIONAL: What We've Learned
- Module 4 Overview
- Module 4 Readings
- Module 4 Quiz
- Course Conclusion
- Course Conclusion
- Gies Online Programs
- Congratulations!
- Get Your Course Certificate
Summary of User Reviews
This course on investments fundamentals has been highly rated by users. The course covers all the basics of investments thoroughly and is well-structured. Many users appreciated the instructor's clear explanations and practical examples.Key Aspect Users Liked About This Course
Clear explanations and practical examples.Pros from User Reviews
- Thorough coverage of investment basics
- Well-structured course materials
- Engaging and knowledgeable instructor
- Practical examples and exercises
- Useful quizzes and assessments
Cons from User Reviews
- Some users found the course too basic
- Limited coverage of advanced investment topics
- No personal feedback on assignments
- Some technical issues with the platform
- Course can be time-consuming
Scott Weisbenner
4.7 Raiting
Fundamentals of Rehearsing Music Ensembles
- 4.8
-
![]()
![]()
![]()
![]()
![]()
Learn and practice the basic principles of running an effective music ensemble rehearsal. Techniques and strategies are applicable to a variety of ensembles, including bands, orchestras, choirs, and chamber groups....
Economia e gestione delle imprese
- 0.0
-
![]()
![]()
![]()
![]()
![]()
Un corso per conoscere le organizzazioni imprenditoriali, il ruolo della gestione delle operazioni in un'azienda e gli strumenti di supporto ai processi di management....
Investments II: Lessons and Applications for Investors
- 4.8
-
![]()
![]()
![]()
![]()
![]()
You will examine the investment decisions (and behavioral biases) of participants in defined-contribution (DC) pension plans like 401(k) plans in the U....
Complete Investing Course 2021 (Stocks, ETFs Investing)
- 4.4
-
![]()
![]()
![]()
![]()
![]()
Learn investing in stocks, mutual funds, ETFs, and real estate from a CPA, MBA. Start investing now. Investing is easy. Course + Investing Checklist included...
