In this course, you will start by reviewing the fundamentals of investments, including the trading off of return and risk when forming a portfolio, asset pricing models such as the Capital Asset Pricing Model (CAPM) and the 3-Factor Model, and the efficient market hypothesis. You will be introduced to the two components of stock returns – dividends and capital gains – and will learn how each are taxed and the incentives provided to investors from a realization-based capital gains tax. You will examine the investment decisions (and behavioral biases) of participants in defined-contribution (DC) pension plans like 401(k) plans in the U.S. and will learn about the evidence regarding the performance of individual investors in their stock portfolios. The course concludes by discussing the evidence regarding the performance of actively-managed mutual funds. You will learn about the fees charged to investors by mutual funds and the evidence regarding the relation between fees charged and fund performance. Segments of the portfolios of mutual funds that may be more likely to outperform and examples of strategies designed to “earn alpha” will also be introduced.
This course is part of the Financial Management Specialization
Financial Management SpecializationUniversity of Illinois at Urbana-ChampaignAbout this Course
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- Stock
- Financial Markets
- Investment Strategy
- Investment
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Syllabus - What you will learn from this course
Course Orientation
Module 1: Fundamentals and Composition of Returns
Module 2: Investment Decisions in DC Pension Plans
Module 3: Performance of Individual Investors
Module 4: Performance of Mutual Funds and Search for Alpha
Course Conclusion
Reviews
- 5 stars83.60%
- 4 stars12.08%
- 3 stars2.58%
- 2 stars0.61%
- 1 star1.10%
TOP REVIEWS FROM INVESTMENTS II: LESSONS AND APPLICATIONS FOR INVESTORS
The lecture was very clear and helpful making the course easy to comprehend also the video very helpful thanks alot
A very well explained course. Professor was very innovative and interactive during the entire course which really helped a lot.
Great course! It is clear that it took a lot of time and effort to prepare such quality material. Completely worth it!
Great sequel to the Investment I course, and dives into a lot of interesting finance research. Great course, and very engaging.
About the Financial Management Specialization
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