From 0 to 1: Investments and Portfolio Theory

A zoom-in, zoom-out, connect-the-dots take on Investments and Portfolio Theory including Markowitz Model and CAPM

 

What's Inside

Course Description

A zoom-in, zoom-out, connect-the-dots tour of Investment and Portfolio Theory

Let's parse that

  • 'connect the dots': Investments and Portfolio Theory are a function of risk, return and the trade-offs achieved between them. The factors that affect these are interconnected. If you get a hang of the relationships, Portfolio Theories would seem like a piece of cake.
  • 'zoom in': Getting the details is very important in portfolio theory - the risk-return trade-off are the core basis for all the theories and because they are inversely related, getting the concepts right can be a little tricky. This course gets the details right where they are important.
  • 'zoom out': Details are important, but not always. This course knows when to switch to the big picture.

What's Covered:

  • Investments introduced: Returns, elements of return, time value, inflation and risk premium and how each of these change returns.
  • Various investment instruments: term deposits, bonds, stocks discussed in detail bringing out the frequency and quantum of return, sources of return and quantum of risk from each of the assets.
  • Markowitz Modern Portfolio Theory: Five elements of the theory explained: Risk Averse, Portfolios, Risk-Retun Trade off, Measuring Return and Measuring Risk.
  • Measuring Return: Explained steps for measuring individual assets and portfolio returns using random variables and probability theory along with logical explanation for each step
  • Measuring Risk: Explained measuring risk of individual assets and portfolio risk along with step-by-step procedure for variance, standard deviation, covariance, correlation coefficient and the reason for using these.
  • Types of Return: Systematic and Unsystematic risks, types of each and effect on investments
  • Diversification of Investment: Learn by example how diversification reduces Unsystematic risk and what Market Portfolio is.
  • Risk Free Assets: Real and Nominal Risk free rate of return including the components
  • CAPM: The 4 components of CAPM including in-depth on types of Beta and how investment decisions using CAPM are taken
  • Equity and Entity Valuation: A teaser on CAPM and WACC used for equity valuation.

Talk to us!

Mail us about anything - anything! - and we will always reply :-)

What are the requirements?

  • This course assumes no prior knowledge of accounting or finance

What am I going to get from this course?

  • Over 21 lectures and 4.5 hours of content!
  • Understand investment, risk, return, trade-offs, portfolio theories
  • Calculate return and risk of assets and portfolios using Markowitz Modern Portfolio Theory
  • Calculate the CAPM Required rate of return and take investment decisions

What is the target audience?

  • Yep! Business majors and aspiring MBAs
  • Yep! Finance professionals who are rusty on equity valuation
  • Yep! CFA Candidates
  • Yep! Accountants looking to strengthen their applied corporate finance skills
  • Yep! Non-finance professionals, aspiring entrepreneurs looking to understand how companies are valued

Get started now!



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Loonycorn

Loonycorn is comprised of a couple of individuals —Janani Ravi and Vitthal Srinivasan—who have honed their tech expertises at Google and Stanford. The team believes it has distilled the instruction of complicated tech concepts into funny, practical, engaging courses, and is excited to be sharing its content with eager students.

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