UIUC - Investments I: Fundamentals of Performance Evaluation
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Investments I: Fundamentals of Performance Evaluation at Coursera Overview
Duration | 26 hours |
Start from | Start Now |
Total fee | Free |
Mode of learning | Online |
Difficulty level | Intermediate |
Official Website | Explore Free Course  |
Credential | Certificate |
Investments I: Fundamentals of Performance Evaluation at Coursera Highlights
- Shareable Certificate Earn a Certificate upon completion
- 100% online Start instantly and learn at your own schedule.
- Course 3 of 7 in the Financial Management Specialization
- Flexible deadlines Reset deadlines in accordance to your schedule.
- Approx. 26 hours to complete
- English Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish
Investments I: Fundamentals of Performance Evaluation at Coursera Course details
- 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).
- The over-arching goals of this course are to build an understanding of the fundamentals of investment finance and provide an ability to implement key asset-pricing models and firm-valuation techniques in real-world situations. Specifically, upon successful completion of this course, you will be able to:
- ? Explain the tradeoffs between risk and return
- ? Form a portfolio of securities and calculate the expected return and standard deviation of that portfolio
- ? Understand the real-world implications of the Separation Theorem of investments
- ? Use the Capital Asset Pricing Model (CAPM) and 3-Factor Model to evaluate the performance of an asset (like stocks) through regression analysis
- ? Estimate and interpret the ALPHA (?) and BETA (?) of a security, two statistics commonly reported on financial websites
- ? Describe what is meant by market efficiency and what it implies for patterns in stock returns and for the asset-management industry
- ? Understand market multiples and income approaches to valuing a firm and its stock, as well as the sensitivity of each approach to assumptions made
- ? Conduct specific examples of a market multiples valuation and a discounted cash flow valuation
- This course was previously entitled ?Financial Evaluation and Strategy: Investments? and was part of a previous specialization entitled "Improving Business and Finances Operations", which is now closed to new learner enrollment. ?Financial Evaluation and Strategy: Investments? received an average rating of 4.8 out of 5 based on 199 reviews over the period August 2015 through August 2016. You can view a detailed summary of the ratings and reviews for this course in the Course Overview section.
- This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.
Investments I: Fundamentals of Performance Evaluation at Coursera Curriculum
Course Overview
Course Introduction
About this Course: Ratings and Reviews
Syllabus
Video Lecture Slides and 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
Orientation Quiz
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
Gies Online Programs
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Investments I: Fundamentals of Performance Evaluation