Rice University
Portfolio Selection and Risk Management
Rice University

Portfolio Selection and Risk Management

This course is part of Investment and Portfolio Management Specialization

Taught in English

Some content may not be translated

Arzu Ozoguz

Instructor: Arzu Ozoguz

38,466 already enrolled

Included with Coursera Plus

Course

Gain insight into a topic and learn the fundamentals

4.6

(589 reviews)

|

92%

22 hours (approximately)
Flexible schedule
Learn at your own pace

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

14 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.6

(589 reviews)

|

92%

22 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

Placeholder

Build your subject-matter expertise

This course is part of the Investment and Portfolio Management Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
  • Earn a shareable career certificate
Placeholder
Placeholder

Earn a career certificate

Add this credential to your LinkedIn profile, resume, or CV

Share it on social media and in your performance review

Placeholder

There are 5 modules in this course

This module introduces the second course in the Investment and Portfolio Management Specialization. In this module, we discuss one of the main principles of investing: the risk-return trade-off, the idea that in competitive security markets, higher expected returns come only at a price – the need to bear greater risk. We develop statistical measures of risk and expected return and review the historical record on risk-return patterns across various asset classes.

What's included

10 videos11 readings3 quizzes1 peer review

In this module, we build on the tools from the previous module to develop measure of portfolio risk and return. We define and distinguish between the different sources of risk and discuss the concept of diversification: how and why putting risky assets together in a portfolio eliminates risk that yields a portfolio with less risk than its components. Finally, we review the quantitative tools that help us identify the ‘best’ portfolios with the least risk for a given level of expected return by considering a numerical example using international equity data.

What's included

16 videos12 readings4 quizzes2 peer reviews1 discussion prompt

In this module, we describe how investors make choices. Specifically, we look at how utility functions are used to express preferences. We review measures to describe investors’ attitude towards risk. Finally, we discuss how we can summarize investors’ preferences using a specific utility function: mean-variance preferences.

What's included

7 videos7 readings3 quizzes

In this module, you will learn about mean-variance optimization: how to make optimal capital allocation and portfolio choice decisions when investors have mean-variance preferences. This was one of the ground-breaking ideas in finance. We will formally set up the investor’s portfolio choice problem and learn step-by-step how to solve for the optimal allocation and risky portfolio choice given a set of risky securities. You will also have an opportunity to apply these techniques to a numerical example. This module is slightly more technical than the others. Stick with it… you will not regret it!

What's included

10 videos12 readings2 quizzes1 peer review

In this module, we build on the insights obtained from modern portfolio theory to understand how risk and return are related in equilibrium. We first look at the main workhorse model in finance, the Capital Asset Pricing Model and discuss the expected return-beta relationship. We then turn our attention to multi-factor models, such as the Fama-French three-factor model.

What's included

9 videos7 readings2 quizzes

Instructor

Instructor ratings
4.5 (59 ratings)
Arzu Ozoguz
Rice University
4 Courses140,361 learners

Offered by

Rice University

Recommended if you're interested in Finance

Why people choose Coursera for their career

Felipe M.
Learner since 2018
"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."
Jennifer J.
Learner since 2020
"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."
Larry W.
Learner since 2021
"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."
Chaitanya A.
"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Learner reviews

Showing 3 of 589

4.6

589 reviews

  • 5 stars

    72.83%

  • 4 stars

    20.20%

  • 3 stars

    3.39%

  • 2 stars

    1.52%

  • 1 star

    2.03%

TW
5

Reviewed on Oct 29, 2022

AF
5

Reviewed on Nov 10, 2018

SR
5

Reviewed on Oct 12, 2020

New to Finance? Start here.

Placeholder

Open new doors with Coursera Plus

Unlimited access to 7,000+ world-class courses, hands-on projects, and job-ready certificate programs - all included in your subscription

Advance your career with an online degree

Earn a degree from world-class universities - 100% online

Join over 3,400 global companies that choose Coursera for Business

Upskill your employees to excel in the digital economy

Frequently asked questions