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
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Syllabus - What you will learn from this course
Course Overview
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
Course Conclusion
Reviews
- 5 stars83.62%
- 4 stars10.56%
- 3 stars2.78%
- 2 stars1.50%
- 1 star1.50%
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.
Amazing! Shed light on so many questions that I didn't even know to ask and corrected a lot of assumptions I had wrong. Loved this class. A must take class.
This is a great course, highly recommend it, but make sure you have the bandwidth to climb a steep learning curve if you aren't in the investment world.
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.
About the Financial Management Specialization

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