About this Course
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Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Approx. 31 hours to complete

Suggested: 5 weeks...

English

Subtitles: English
User
Learners taking this Course are
  • Risk Managers
  • Financial Analysts
  • Traders
  • Financial Advisors
  • Data Scientists

Skills you will gain

Risk ManagementPortfolio ConstructionRisk AnalysisPortfolio Optimization
User
Learners taking this Course are
  • Risk Managers
  • Financial Analysts
  • Traders
  • Financial Advisors
  • Data Scientists

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Approx. 31 hours to complete

Suggested: 5 weeks...

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
5 hours to complete

Module 1- Introduction & Risk and Return

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 returns10m
Risk & Return: Measuring risk10m
Module 1: Risk & Return20m
Week
2
6 hours to complete

Module 2: Portfolio construction and diversification

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 return16m
Measuring portfolio volatility20m
Diversification and portfolio risk30m
Module 2: Portfolio construction and diversification20m
Week
3
2 hours to complete

Module 3: Mean-variance preferences

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 aversion10m
Portfolio choice with mean-variance preferences16m
Module 3: Mean-variance preferences12m
Week
4
5 hours to complete

Module 4: Optimal capital allocation and portfolio choice

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 optimization10m
Optimal capital allocation and portfolio choice18m
4.6
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Top reviews from Portfolio Selection and Risk Management

By ASAug 18th 2019

One of the finest courses on Coursera. Gives a deep and invaluable insight into Investment and Portfolio Management theories and practices. A must do!

By AHDec 17th 2016

I really enjoyed this course. Sometimes it required a lot of discipline to analyse investigate, but at the end I've learn a lot.

Instructor

Avatar

Arzu Ozoguz

Finance Faculty
Jones Graduate School of Business

About Rice University

Rice University is consistently ranked among the top 20 universities in the U.S. and the top 100 in the world. Rice has highly respected schools of Architecture, Business, Continuing Studies, Engineering, Humanities, Music, Natural Sciences and Social Sciences and is home to the Baker Institute for Public Policy....

About the Investment and Portfolio Management Specialization

In this four-course Specialization, you’ll learn the essential skills of portfolio management and personal investing. All investors – from the largest wealth funds to the smallest individual investors – share common issues in investing: how to meet their liabilities, how to decide where to invest, and how much risk to take on. In this Specialization, you will learn how to think about, discuss, and formulate solutions to these investment questions. You will learn the theory and the real-world skills necessary to design, execute, and evaluate investment proposals that meet financial objectives. You will begin with an overview of global financial markets and instruments that characterize the investment opportunities available to today’s investor. You will then learn how to construct optimal portfolios that manage risk effectively, and how to capitalize on understanding behavioral biases and irrational behavior in financial markets. You will learn the best practices in portfolio management and performance evaluation as well as current investment strategies. By the end of your Capstone Project, you will have mastered the analytical tools, quantitative skills, and practical knowledge necessary for long-term investment management success. To see an overview video for this Specialization, click here!...
Investment and Portfolio Management

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

More questions? Visit the Learner Help Center.