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).
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 stars83.86%
- 4 stars10.24%
- 3 stars2.82%
- 2 stars1.53%
- 1 star1.53%
TOP REVIEWS FROM INVESTMENTS I: FUNDAMENTALS OF PERFORMANCE EVALUATION
Great course and professor. Packs a lot of information and did not find any mistakes. Very smooth course overall. Highly recommended.
Lectures are nicely delivered!!! BUT videos of lectures should be confined within 15 minutes and be cited data sources and how to we can see and obtain data aswell
Normal course work was very good. The Honors content was a bit disappointing in that I finished it before the weeks deadline but never received a grade.
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.
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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