Overview

Deepen your understanding of the financial markets with this advanced course that teaches you to manage risk, seize opportunities, and balance active and passive investment strategies.

Course Number

Course No. 5751

Introduction

This course covers cutting-edge investment principles and practices used by professionals, providing hands-on techniques for analyzing potential investments. Learn to measure risk using probability and statistics, and evaluate whether a security will yield adequate returns relative to its risk.

Video Lectures

• Investment Decisions and Goals
  • Understand the importance of liquidity, risk, and legacy in investment decisions.
  • Duration: 31 min

• A Framework for Investing
  • Learn about active management strategies that can enhance a passive market portfolio.
  • Duration: 30 min

• Mistakes Investors Make
  • Explore common cognitive errors in investing, including biases and emotional reactions.
  • Duration: 31 min

4. The Characteristics of Security Returns
   • Review essential probability and statistics concepts for measuring asset returns and volatility.
   • Duration: 32 min

5. The Theory of Efficient Markets
   • Investigate whether active trading can yield profits based on the efficient markets hypothesis.
   • Duration: 31 min

• Evidence on Efficient Markets
  • Study actual market data to evaluate momentum phenomena and volatility anomalies.
  • Duration: 31 min

• Valuation Formulas
  • Discover present value, future value, and net present value formulas, and their applications in investing.
  • Duration: 35 min

• Bond Pricing
  • Understand bond pricing mechanics and how to calculate yield to maturity.
  • Duration: 32 min

• The Term Structure of Interest Rates
  • Examine how interest rates vary based on the time to maturity of different bonds.
  • Duration: 33 min

• The Risks in Bonds
  • Explore interest rate and credit risks associated with bond ownership.
  • Duration: 32 min

• Quantifying Interest Rate Risk
  • Calculate duration and understand its significance in bond investments.
  • Duration: 31 min

• Value Creation and Stock Prices
  • Investigate how capital structure differences can lead to varying equity returns for similar firms.
  • Duration: 32 min

• Present Value of Growth Opportunities
  • Analyze managerial decisions and their effects on stock prices using valuation models.
  • Duration: 34 min

• Modeling Investor Behavior
  • Study economist models of investor behavior and its influence on stock selection.
  • Duration: 32 min

• Managing Risk in Portfolios
  • Learn strategies for combining securities to create optimal investment portfolios.
  • Duration: 32 min

16. The Behavior of Stock Prices
    • Use regression analysis to assess securities’ risk and identify mispricing opportunities.
    • Duration: 30 min

• The Capital Asset Pricing Model (CAPM)
  • Understand the CAPM and how it helps measure risk within portfolios.
  • Duration: 33 min

• How to Exploit Mispriced Securities
  • Explore methods for identifying and capitalizing on mispriced securities.
  • Duration: 30 min

• Performance Evaluation
  • Survey performance metrics to evaluate actively managed portfolios.
  • Duration: 35 min

• Market Making and Liquidity
  • Examine liquidity, its definitions, and how to measure it in market securities.
  • Duration: 32 min

• Understanding Derivatives
  • Define derivatives and explore options contracts, including puts and calls.
  • Duration: 31 min

22. Using Derivatives
    • Investigate speculation and hedging strategies utilizing options.
    • Duration: 30 min

• Pricing Derivatives
  • Learn about pricing options using the binomial method and the Black-Scholes formula.
  • Duration: 33 min

24. Trade Opportunities or Risk?
    • Reevaluate CAPM effectiveness and analyze alternatives and market anomalies.
    • Duration: 33 min