About this Course

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Learner Career Outcomes

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started a new career after completing these courses

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got a tangible career benefit from this course
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Flexible deadlines
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Approx. 22 hours to complete
English

Skills you will gain

Risk ManagementPortfolio ConstructionRisk AnalysisPortfolio Optimization

Learner Career Outcomes

50%

started a new career after completing these courses

50%

got a tangible career benefit from this course
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Flexible deadlines
Reset deadlines in accordance to your schedule.
Approx. 22 hours to complete
English

Offered by

Placeholder

Rice University

Syllabus - What you will learn from this course

Content RatingThumbs Up92%(1,988 ratings)Info
Week
1

Week 1

5 hours to complete

Module 1- Introduction & Risk and Return

5 hours to complete
10 videos (Total 64 min), 11 readings, 4 quizzes
10 videos
Overview – No free lunches! Risk and return trade-off4m
Measuring returns: Geometric average returns6m
Measuring returns: Arithmetic average returns4m
Measuring risk: Volatility of returns8m
Alternative measures of risk7m
More on measuring risk and risk measures4m
Measuring risk and return: Illustration with four stocks8m
Historical record on risk-return patterns8m
Summary1m
11 readings
Grading Policy10m
How to use discussion forums10m
Meet & Greet: Get to know your classmates10m
Pre-Course Survey10m
Lecture handouts: Risk and return: Measuring returns10m
Risk and return: Measuring returns Quiz Solutions10m
Lecture handouts: Risk and return: Measuring risk10m
Risk & Return: Measuring risk Quiz solutions10m
Lecture handouts: Risk and return: Historical record10m
Investing: Stocks for the long run (optional)10m
Module 1: Risk & Return Solutions10m
3 practice exercises
Risk and return: Measuring returns30m
Risk & Return: Measuring risk30m
Module 1: Risk & Return30m
Week
2

Week 2

7 hours to complete

Module 2: Portfolio construction and diversification

7 hours to complete
16 videos (Total 83 min), 12 readings, 6 quizzes
16 videos
Measuring the expected return of a portfolio8m
Let’s review how we measure risk for a single asset4m
Finding the volatility of a portfolio return3m
Portfolio volatility: Another example2m
Measuring the co-movement between securities9m
Putting it all together… portfolio risk and diversification7m
Diversification and portfolio risk3m
Diversification: A graphical illustration with two assets4m
Diversification: A graphical illustration with three assets3m
Diversification: Systematic risk and idiosyncratic risk7m
Diversification: An illustration from international equity markets (US and Japan only)11m
Mean-variance frontier and efficient portfolios: International equity investment example (G5 countries)5m
Are you diversified adequately?4m
Mean-variance portfolio analysis5m
Summary1m
12 readings
Lecture handouts: Measuring portfolio expected return
Measuring expected portfolio return Quiz solutions10m
Lecture handouts: Measuring portfolio volatility
Measuring portfolio volatility Quiz solutions10m
Accompanying spreadsheets for "Diversification: An illustration from international equity markets (US and Japan only)"10m
A Note on using EXCEL Solver10m
Lecture handouts: Diversification and portfolio risk
Lecture handouts: Mean-variance frontier and efficient portfolios: International equity investment example
Diversification and portfolio risk Quiz solutions10m
Equity investing: Globalization and diversification (optional)10m
Lecture handouts: Are you adequately diversified?
Module 2: Portfolio construction and diversification- Solutions10m
4 practice exercises
Measuring expected portfolio return30m
Measuring portfolio volatility30m
Diversification and portfolio risk30m
Module 2: Portfolio construction and diversification30m
Week
3

Week 3

3 hours to complete

Module 3: Mean-variance preferences

3 hours to complete
7 videos (Total 47 min), 7 readings, 3 quizzes
7 videos
Preferences: Utility functions8m
Risk aversion9m
Expected utility6m
Mean-variance preferences8m
Portfolio choice problem with mean-variance preferences: A graphical illustration with equity and bond data10m
Summary1m
7 readings
Lecture handouts: Utility and risk aversion
A note on measuring risk aversion and certainty equivalent10m
Utility and Risk aversion Quiz solutions10m
Lecture handouts: Mean-variance preferences
Portfolio choice with mean-variance preferences quiz solutions10m
Measure your own risk tolerance10m
Module 3: Mean-variance preferences- Solutions10m
3 practice exercises
Utility and risk aversion30m
Portfolio choice with mean-variance preferences30m
Module 3: Mean-variance preferences30m
Week
4

Week 4

5 hours to complete

Module 4: Optimal capital allocation and portfolio choice

5 hours to complete
10 videos (Total 63 min), 12 readings, 3 quizzes
10 videos
Capital allocation line11m
Solving for the optimal capital allocation7m
Optimal capital allocation example: U.S. equities and Treasuries10m
Finding the optimal risky portfolio: Maximizing the Sharpe ratio6m
Main insight: The optimal risky portfolio is independent of preferences2m
Finding the optimal risk portfolio when you have multiple risky securities10m
Investment decision process5m
What’s wrong with mean-variance portfolio analysis?4m
Summary2m
12 readings
A note on optimal capital allocation10m
Accompanying spreadsheets for "Optimal Capital Allocation Example: US Equities and Treasuries"10m
Lecture handouts: Mean-variance optimization
Mean-variance optimization Quiz solutions10m
Analytical solution to MVE portfolio (two risky assets)10m
A note on finding the mean variance efficient portfolio (Two risky assets)10m
Accompanying spreadsheets for "Finding the optimal risky portfolio: Maximizing the Sharpe ratio"10m
A note on finding the minimum variance frontier with multiple risky assets10m
Accompanying spreadsheet for finding minimum variance frontier with multiple risky assets10m
Lecture handouts: Optimal risky portfolio choice
Lecture handouts
Optimal capital allocation and portfolio choice- Solutions10m
2 practice exercises
Mean-variance optimization30m
Optimal capital allocation and portfolio choice30m

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