About this course: In this course, you will dive into the concepts of rationality and irrationality and understand how they impact our investment decisions and what the consequences can be at the market level. You will first explore the different biases that we, as humans, are subjected to when facing investment decisions and how they may impact the outcomes of these decisions. Moreover, you will see how emotions and ethical concerns such as honesty and trust influence market participants. When they are considered as a group rather than individually, you will discover how rationality and irrationality can drive asset prices to and away from their fair value. Finally, you will be presented with different portfolio construction methodologies and investment styles that make up the landscape of today's portfolio management industry. At key points throughout the course, you will benefit from the practical knowledge of experts from our corporate partner, UBS, in how to build and manage clients' portfolios.
Created by: University of Geneva
Taught by: University of Geneva- Tony Berrada, SFI Associate Professor of Finance
Geneva Finance Research Institute
Taught by: University of Geneva- Jonas Demaurex, Teaching Assistant
Geneva Finance Research Institute
Taught by: University of Geneva- Rajna Gibson Brandon, SFI Senior Chaired Professor of Finance and Managing Director of the GFRI
Geneva Finance Research Institute
Taught by: University of Geneva- Michel Girardin, Lecturer in Macro-Finance - Project Leader for the "Investment Management" specialization
Geneva Finance Research Institute
Taught by: University of Geneva- Kerstin Preuschoff, Associate Professor of Neurofinance and Neuroeconomics
Geneva Finance Research Institute
Taught by: University of Geneva- Olivier Scaillet, SFI Senior Chaired Professor of Finance and Vice-dean (research) at GSEM
Geneva Finance Research Institute
Taught by: University of Geneva- Philip Valta, SFI Assistant Professor of Finance
Geneva Finance Research Institute
| Basic Info | Course 2 of 5 in the Investment Management Specialization |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
General Introduction and Key Concepts
In this introductory week, we will start by illustrating how emotions can hinder sensible investment decisions. You will then have the opportunity to check if you master the concepts of the first course that are important for this second course. Finally, we will lay the ground for next week’s content by looking at rational decision making.
7 videos, 2 readings, 2 practice quizzes
- Video: Why you should choose this course
- Reading: Course syllabus
- Video: An example: buying is easy, but when is it a good time to sell? - Buying
- Video: An example: buying is easy, but when is it a good time to sell? - Holding
- Video: An example: buying is easy, but when is it a good time to sell? - Selling
- Discussion Prompt: What about you?
- Video: The key things you need to know to define your investment profile - UBS guest speaker
- Practice Quiz: Practice quiz on the relevant content of Course 1 (Understanding Financial Markets)
- Reading: Glossary
- Video: What you will learn in this Module
- Practice Quiz: Guess 2/3 of the average
- Video: Rational decision making
Graded: Graded quiz on the content of Week 1
WEEK 2
How Individuals Make Financial Decisions
The focus of this second week is on you, the investor: what are the reasons you participate in financial markets? How do you make investment decisions? What can go wrong in your decision process and what are the consequences? What can you do about it? To answer these questions, we will talk about cognitive biases, emotions and moral values and their respective link with investment decisions.
15 videos
- Video: How our brain may misinterpret information
- Video: The basic steps in investment
- Video: Biases when choosing which assets to look at
- Video: Biases when processing financial information
- Video: Biases when rebalancing you portfolio
- Video: Biases when evaluating performance
- Video: Wrap up
- Video: How our emotions impact our investment decisions
- Video: Why we trade
- Video: What can we learn from this?
- Video: The role of media in financial markets
- Video: Honesty and trust in investment decision making - Study design
- Video: Honesty and trust in investment decision making - Study results
- Discussion Prompt: How would you enforce trust?
- Video: Impact Investing - UBS guest speaker
- Video: Are emotions always a bad thing in investing?
Graded: Cognitive biases
Graded: Graded quiz on the content of Week 2
WEEK 3
Market Efficiency, Bubbles & Crises
In this third week, we will have a look at investors’ behavior as a group. How does it impact asset prices? How do these prices reflect available information? What does it imply for the profitability of some trading strategies? What can go wrong in this price formation process and how can (and did) it cause financial bubbles and crises? This week also features as special guest: Prof. Jean-Pierre Danthine, former vice-chairman of the Swiss National Bank, who will offer insights into some of these issues.
18 videos
- Video: What you will learn in this Module
- Video: Defining market efficiency
- Video: Testing for the efficient market hypothesis: Weak form
- Video: Testing for the efficient market hypothesis: Semi strong form
- Video: Testing for the efficient market hypothesis: Strong form
- Discussion Prompt: Do you think markets are efficient?
- Video: Overview of different origins of financial crises
- Video: A first example for the development and fallout of a real crisis: the VW scandal
- Video: A second example for the development and fallout of a real crisis: oil shocks - 1970s
- Video: A second example for the development and fallout of a real crisis: oil shocks - 2000s
- Video: A first example of an anticipation crisis: 1987 - The "Fed Model"
- Video: A first example of an anticipation crisis: 1987 - The crash
- Video: A second example of an anticipation crisis: 2000
- Video: The perfect storm: the global financial crisis - Global imbalances
- Video: The perfect storm: the global financial crisis - Policy errors
- Video: The perfect storm: the global financial crisis - Lax regulation
- Video: How do central banks deal with the issue of financial (in)stability? - Course 1 recap
- Video: How do central banks deal with the issue of financial (in)stability? - Asset prices
- Video: An interview with Prof. Jean-Pierre Danthine
Graded: Graded quiz on market efficiency
Graded: Graded quiz on the origins of financial bubbles and crises
WEEK 4
Portfolio Construction and Investment Styles
In this final week, we will look at two main portfolio construction methodologies: top-down and bottom-up. We will see how they differ but also how they can be combined. In the second lesson, we will review some important investment styles that are commonly used in the portfolio management industry. In this final lesson, you will also be given the opportunity to experiment with different trading strategies and compare your results with fellow learners.
11 videos
- Video: What you will learn in this Module
- Video: Building a portfolio the top-down way – Definition
- Video: Building a portfolio the top-down way – Use
- Video: Building a portfolio the top-down way – Importance
- Video: Portfolio construction via bottom-up - UBS guest speaker
- Video: Value versus growth
- Video: Fundamental or quantitative driven style? - UBS guest speaker
- Video: Contrarian versus momentum - Momentum
- Discussion Prompt: Give it a try: Momentum
- Video: Contrarian versus momentum - Contrarian
- Discussion Prompt: Give it a try: Contrarian
- Video: Core & satellite
- Video: Thematic investing - UBS guest speaker
Graded: Graded quiz on portfolio construction
Graded: Graded quiz on investment styles
FAQs
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University of Geneva
Founded in 1559, the University of Geneva (UNIGE) is one of Europe's leading universities. Devoted to research, education and dialogue, the UNIGE shares the international calling of its host city, Geneva, a centre of international and multicultural activities with a venerable cosmopolitan tradition.
Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
Ratings and Reviews
great realistic insights
Excelente Course, Really good teachers.
I'm really happy with the pace of the course, the exhibition of themes and teachers.
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I have learned quite a lot about investment styles and types and how to use my knowledge and character into making investment decisions. I also learned to be more realistic and logical and not be caught by emotions when I make investments. And to use all type of available information before I make an investment decision.