Advanced Investments

Deepen your understanding of the financial markets with this comprehensive course designed to help you manage risk, seize opportunities, and balance both active and passive strategies. Through real-world case studies, valuation methods, and risk assessment tools, you’ll gain the confidence to make smarter investment decisions.

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What You’ll Learn in the Course

01: Investment Decisions and Goals (31 min)
Explore how to define your personal financial goals, including liquidity, risk tolerance, and legacy planning.

02: A Framework for Investing (30 min)
Learn to layer active strategies on top of a passive market portfolio, from timing to stock-picking and arbitrage.

03: Mistakes Investors Make (31 min)
Identify common cognitive errors such as framing, biased self-attribution, and pattern-seeking.

04: The Characteristics of Security Returns (32 min)
Review probability and statistics essentials: expected return, variance, and correlation.

05: The Theory of Efficient Markets (31 min)
Examine the efficient markets hypothesis in its three forms and what it means for active trading.

06: Evidence on Efficient Markets (31 min)
Analyze market data for anomalies like momentum and volatility and whether they offer real opportunities.

07: Valuation Formulas (35 min)
Master present value, future value, and net present value for retirement and corporate valuation.

08: Bond Pricing (32 min)
Learn predictable yet complex bond pricing, yields, and maturity calculations.

09: The Term Structure of Interest Rates (33 min)
Understand yield curves, term structures, and their impact on bond investments.

10: The Risks in Bonds (32 min)
Explore interest rate and credit risks, plus high-yield opportunities.

11: Quantifying Interest Rate Risk (31 min)
Practice calculating bond duration to measure and manage risk exposure.

12: Value Creation and Stock Prices (32 min)
Compare firms’ equity returns through capital structure and leverage.

13: Present Value of Growth Opportunities (34 min)
Apply valuation tools to measure how managerial decisions affect stock prices.

14: Modeling Investor Behavior (32 min)
See how economists predict investor preferences and risk aversion.

15: Managing Risk in Portfolios (32 min)
Learn diversification strategies to balance return and risk.

16: The Behavior of Stock Prices (30 min)
Use regression to assess risk and detect mispricing.

17: The Capital Asset Pricing Model (CAPM) (33 min)
Study CAPM and its role in portfolio risk measurement.

18: How to Exploit Mispriced Securities (30 min)
Discover short selling, alpha measurement, and portfolio optimization.

19: Performance Evaluation (35 min)
Evaluate portfolio results with Sharpe ratio, Jensen’s alpha, and other metrics.

20: Market Making and Liquidity (32 min)
Understand liquidity, trade-offs, and hidden opportunities in less-liquid assets.

21: Understanding Derivatives (31 min)
Get introduced to options, swaps, and their role in modern finance.

22: Using Derivatives (30 min)
Learn how derivatives can be used for speculation and hedging.

23: Pricing Derivatives (33 min)
Dive into option pricing with binomial models and the Black-Scholes formula.

24: Trade Opportunities or Risk? (33 min)
Revisit CAPM, market anomalies, and long-term strategies for sustainable profit.