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).
This course is part of the Financial Management Specialization
About this Course
Skills you will gain
- Investment Strategy
Start working towards your Master's degree
Syllabus - What you will learn from this course
Module 1: Investments Toolkit and Portfolio Formation
Module 2: Motivating, Explaining, & Implementing the Capital Asset Pricing Model (CAPM)
Module 3: Testing the CAPM, Multifactor Models, & Market Efficiency
Module 4: Investment Finance and Corporate Finance: Firm Valuation
- 5 stars83.62%
- 4 stars10.56%
- 3 stars2.78%
- 2 stars1.50%
- 1 star1.50%
TOP REVIEWS FROM INVESTMENTS I: FUNDAMENTALS OF PERFORMANCE EVALUATION
This was a fantastic course, with a realistically attainable amount of material, and a humble, knowledgable professor whose teaching style makes a normally difficult topic very easy to understand.
Excellent course with huge nuggets of theoretical wisdom complemented by practical techniques through Data analysis and solver. A must for every investment enthusiast and manager.
Excellent course. Lot of ground covered by Scott and his detailed explanations make some tougher topics give look more easier. His sense of humor and delivery is really nice
Professor Weisbenner was great in a recorded session and in live sessions. He is excellent in teaching complicated materials and providing common analogies to help us understand.
About the Financial Management Specialization
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