About this course: This course teaches you the concepts of risk and expected return. This course presents an overview of the basic concepts and techniques used to construct financial portfolios. You will learn about the investment process and get a very good understanding of economic, industry, and company analyses. We will also look at understanding and interpreting major portfolio management and risk concepts. Through this course, you will discover the basic concepts of Modern Portfolio Theory. In the second half of the course we explore the frameworks to measure investment performance, as well as the various measures of investment performance. Finally, you will learn how to measure performance of equity, bonds and hedge funds. After completing this course, you will be able to appreciate the details that go into the creation of investment portfolios.

Created by: Indian School of Business

Taught by: Ramabhadran Thirumalai, Assistant Professor
Indian School of Business

Basic Info	Course 2 of 5 in the Financial Markets and Investment Strategy Specialization
Level	Beginner
Language	English
How To Pass	Pass all graded assignments to complete the course.
User Ratings	4.4 stars Average User Rating 4.4See what learners said

Syllabus

WEEK 1

Basics of Investments

The first module discusses the basics of investment process and the time value of money. The concept of time value of money is extended to value assets with cash flows. In the process, we develop shortcuts for valuing annuities and perpetuities. The student is then introduced to the concept of Risk and Return. The module ends with a discussion of Utility theory.

10 videos, 3 readings

Video: Introduction
Video: Investment Process
Video: Investment Philosophies
Reading: 6 Different Investment Philosophies
Reading: Common Investment Strategies of Fund Managers
Video: Introduction to Time Value of Money
Video: Ordinary Annuity
Video: Compounding frequency and Effective Annual Rate
Video: Annuity Due
Video: Perpetuities and stock valuation
Video: Expected returns and risk
Video: Utility theory
Reading: Utility theory and Attitude toward Risk

Graded: Week 1 Assessment

WEEK 2

Concept of risk and return

The second module introduces the student to the concept of portfolio math and the concept of diversification. The student is taught how to construct the investment opportunity set with risky assets and risk-free asset.The student is then introduced to the concept of Market portfolio and the Capital market line.

10 videos, 4 readings

Video: Investment Choices and Portfolios
Video: Capital Allocation
Video: Risky portfolios
Video: Diversification and efficient frontier
Video: Two fund separation
Video: Diversification revisited
Reading: The pros' guide to diversification
Reading: Diversification: How much is too much?
Reading: The 15-Stock Diversification Myth
Video: Investment opportunity set with two risky assets and a risk-free asset
Video: Investment opportunity set with three risky assets and a risk-free asset
Video: The optimal allocation between risky and risk-free assets
Video: The market portfolio and the capital market line
Reading: Does the composition of the market portfolio really matter?

Graded: Week 2 - Assessment

WEEK 3

Understanding investments

This module introduces the CAPM model and the concept of Beta. The student is taught how to calculate the Beta of a security. The student is also introduced to arbitrage pricing theory.

10 videos, 2 readings

Video: The CAPM
Video: Calculating the CAPM beta
Reading: Does the Capital Asset Pricing Model Work?
Video: The security market line
Video: Equilibrium
Video: Disequilibrium
Video: Estimating beta from data
Video: Miscellaneous topics on beta
Video: Determinants of the market risk premium
Video: Multifactor models
Video: The arbitrage pricing theory
Reading: Multifactor Models

Graded: Week 3 - Assessment

WEEK 4

Security analysis

The main focus of this module is portfolio performance evaluation. You will learn equity valuation.

10 videos, 3 readings

Video: Identifying arbitrage opportunities
Video: The arbitrage-free price
Video: Commonly-used risk factors
Video: Dividend discount models
Video: The growth rate of dividends
Video: Valuation based on comparable firms
Video: The PEG ratio and other valuation multiples
Video: Measuring portfolio or fund returns
Video: Benchmarks for portfolio performance evaluation
Video: Alternate performance measures
Reading: The Challenge: How To Benchmark Your Investment Portfolio
Reading: Performance Measurement: The What, Why, and How of the Investment Management Process
Reading: The 101 ways to measure portfolio performance

Graded: Week 4 - Assessment

WEEK 5

Final Assessment

This module tests the understanding of the student in the topics covered so far.

Graded: Comprehensive Assessment

FAQs

How It Works

Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

Help from Your Peers

Connect with thousands of other learners and debate ideas, discuss course material, and get help mastering concepts.

Certificates

Earn official recognition for your work, and share your success with friends, colleagues, and employers.

Creators

Indian School of Business

The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.

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