Investments II: Lessons and Applications for Investors
- 4.8
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Course Summary
This course explores the application of investment concepts to real-life situations. You will learn how to analyze investments, measure risk, and construct portfolios using various investment instruments.Key Learning Points
- Learn how to analyze investment opportunities and measure risk.
- Understand how to construct investment portfolios using various instruments.
- Explore the application of investment concepts to real-life situations.
Related Topics for further study
- investment analysis
- risk measurement
- portfolio construction
- real-life applications
- investment instruments
Learning Outcomes
- Ability to analyze investment opportunities
- Ability to measure risk in investments
- Knowledge of constructing investment portfolios using various instruments
Prerequisites or good to have knowledge before taking this course
- Basic understanding of finance and investments
- Familiarity with Excel
Course Difficulty Level
IntermediateCourse Format
- Self-paced
- Online
Similar Courses
- Financial Markets
- Portfolio Selection and Risk Management
Related Education Paths
Related Books
Description
In this course, you will start by reviewing the fundamentals of investments, including the trading off of return and risk when forming a portfolio, asset pricing models such as the Capital Asset Pricing Model (CAPM) and the 3-Factor Model, and the efficient market hypothesis. You will be introduced to the two components of stock returns – dividends and capital gains – and will learn how each are taxed and the incentives provided to investors from a realization-based capital gains tax. You will examine the investment decisions (and behavioral biases) of participants in defined-contribution (DC) pension plans like 401(k) plans in the U.S. and will learn about the evidence regarding the performance of individual investors in their stock portfolios. The course concludes by discussing the evidence regarding the performance of actively-managed mutual funds. You will learn about the fees charged to investors by mutual funds and the evidence regarding the relation between fees charged and fund performance. Segments of the portfolios of mutual funds that may be more likely to outperform and examples of strategies designed to “earn alpha” will also be introduced.
Outline
- Course Orientation
- Welcome to Investments II: Lessons and Applications for Investors (the launching of a sequel)!
- Get to know Scott (introductory video used for his iMBA course)
- See the “Movie Trailer” for Scott’s Course!
- Learn on Your Terms
- Syllabus
- Video Lecture Transcripts
- A Preview of Coming Attractions: Introduction Videos for Modules 1-4
- What You Will Learn: Course Summary with Animations
- Learning from the Experts: Full Collection of Faculty Focus Episodes
- About the Discussion Forums
- Learn More About Flexible Learning Paths
- Updating Your Profile
- Orientation Quiz
- Module 1: Fundamentals and Composition of Returns
- Module 1 Introduction ("High Stakes Poker Game" and Module in 60)
- 1-1.1. Basics of Return and Risk
- 1-1.2. Capital Asset Pricing Model (CAPM)
- 1-1.3. 3-Factor Model and Market Efficiency
- 1-1.4. Interpretation of Regression Model Results
- 1-1.5. Regression Analysis of Returns to Small-Value Stocks
- 1-2.1. Dividends, Capital Gains, and Firm Payout Policy
- 1-2.2. Realization-Based Capital Gains Tax
- 1-2.3. Seasonality in Stock Returns
- Summary of Module 1 with Animations
- Like this course? Learn more with the iMBA! (Optional)
- Module 1 Overview
- Module 1 Spreadsheet
- Module 1 Quiz
- Module 2: Investment Decisions in DC Pension Plans
- Module 2 Introduction ("Talking Retirement Plans in the Playroom" and Module in 60)
- 2-1.1. Overview of Key Biases in Decisions
- 2-1.2. Representativeness
- 2-1.3. Familiarity Bias and Background Risk
- 2-1.4. Endorsement Effects
- 2-1.5. Naïve Diversification
- 2-1.6. Inertia
- 2-1.7. Option Confusion
- 2-1.8. Power of Defaults
- 2-1.9. Bottom Line on Biases in Investment Decisions
- 2-2.1. Faculty Focus with Dean Jeffrey Brown (interview)
- Summary of Module 2 with Animations
- Module 2 Overview
- Module 2 Recommended Reading
- Module 2 Quiz
- Module 3: Performance of Individual Investors
- Module 3 Introduction ("Picking a Portfolio at the Pub" and Module in 60)
- 3-1.1. Overview of the Performance of Individual Investors
- 3-2.1. Overconfidence
- 3-2.2. Loss Aversion
- 3-2.3. Effects of Loss Aversion (Part 1): Loss Aversion & Tax Incentives for Stock Trades
- 3-2.4. Effects of Loss Aversion (Part 2): Personal Connection to Asset
- 3-2.5. Effects of Loss Aversion (Part 3): Corporate Finance Decisions
- 3-2.6. Faculty Focus with Professor Yuhai Xuan (interview)
- 3-2.7. Effects of Loss Aversion (Part 4): Explanation for Momentum?
- 3-2.8. Effects of Loss Aversion (Part 5): Importance of Endowment
- 3-2.9. Emotion and Financial Decisions
- 3-3.1. Local Investments
- 3-3.2. Changing Nature of Individual Investors?
- Summary of Module 3 with Animations
- Module 3 Overview
- Module 3 Quiz
- Module 4: Performance of Mutual Funds and Search for Alpha
- Module 4 Introduction ("Reliving Past Glory with a Visit to the Track" and Module in 60)
- 4-1.1. Overview of Performance of Mutual Funds
- 4-1.2. Fees and Fund Performance
- 4-1.3. Brokers and Fund Performance
- 4-1.4. Trends in Mutual Fund Industry
- 4-2.1. Introduction to Search for Alpha
- 4-2.2. Mutual Fund Disclosure
- 4-2.3. Mutual Funds and Local Investments
- 4-2.4. Information Networks and Performance
- 4-2.5. Closet Indexing and Performance Persistence
- 4-2.6. Valuing Complicated Firms and Exploiting Inattention
- 4-2.7. Faculty Focus with Professor Joshua Pollet (interview)
- 4-2.8. Potential Modern Sources of Information
- 4-2.9. Faculty Focus with Professor Jiekun Huang (interview)
- 4-3.1 Economics of Mutual Funds
- 4-3.2 International Evidence on Active Mutual Fund Management
- Summary of Module 4 with Animations
- Module 4 Overview
- Module 4 Recommended Reading
- Module 4 Quiz
- Course Conclusion
- Conclusion of Investments II (and farewell from Scott!)
- Gies Online Programs
- Congratulations!
- Get Your Course Certificate
Summary of User Reviews
Investments: Applications is a highly rated course on Coursera that has received positive reviews from many users. The course covers various investment concepts and their applications in the real world, and is taught by experienced instructors. One key aspect of the course that many users found to be good is its practical approach to teaching investment strategies.Pros from User Reviews
- Practical approach to teaching investment strategies
- Experienced instructors
- Covers various investment concepts and their applications in the real world
- Flexible schedule
- Engaging and interactive course content
Cons from User Reviews
- Some users found the course to be too basic
- Lack of personalized feedback
- Some technical issues with the platform
- Limited interaction with instructors
- No certificate or accreditation
Scott Weisbenner
4.8 Raiting
Investments I: Fundamentals of Performance Evaluation
- 4.7
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In this course, we will discuss fundamental principles of trading off risk and return, portfolio optimization, and security pricing. The course emphasizes real-world examples and applications in Excel throughout....
Investments II: Lessons and Applications for Investors
- 4.8
-
![]()
![]()
![]()
![]()
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You will examine the investment decisions (and behavioral biases) of participants in defined-contribution (DC) pension plans like 401(k) plans in the U....
