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.
About this Course
Skills you will gain
- 5 stars83.66%
- 4 stars12%
- 3 stars2.59%
- 2 stars0.61%
- 1 star1.11%
TOP REVIEWS FROM INVESTMENTS II: LESSONS AND APPLICATIONS FOR INVESTORS
Thank you, Professor Scott Weisbenner, for an excellence course that you put your heart and passion (for Star Wars) into.
Great sequel to the Investment I course, and dives into a lot of interesting finance research. Great course, and very engaging.
Very good introduction of some comedy compared to Investments I. The early review of fundamentals and in-depth discussion and teachings about investment topics were much appreciated.
Excellent class! Very useful information for investing. Great faculty focus sessions with UIUC researchers!. Also love the passion that Dr. Weisbenner displays in teaching. Would highly recommend!
About the Financial Management Specialization
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