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
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.
- 5 stars83.64%
- 4 stars12.07%
- 3 stars2.51%
- 2 stars0.62%
- 1 star1.13%
TOP REVIEWS FROM INVESTMENTS II: LESSONS AND APPLICATIONS FOR INVESTORS
Excellent content. Will change the way you view mutual funds and 401K investment options. Great job and funny lectures too.
Great course! It is clear that it took a lot of time and effort to prepare such quality material. Completely worth it!
Excellent course. Dr. Weisbenner truly cares for the course. This was one of the best online courses I have taken. Well prepared course.
Much better than Investments I, I feel that I got more from this course and sort of wish their order was flipped as then I might have gotten more from the first class.
About the Financial Management Specialization
This Specialization covers the fundamentals of strategic financial management, including financial accounting, investments, and corporate finance. You will learn to evaluate major strategic corporate and investment decisions and to understand capital markets and institutions from a financial perspective, and you will develop an integrated framework for value-based financial management and individual financial decision-making.
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