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
About this Course
Skills you will gain
- Financial Markets
- Investment Strategy
Start working towards your Master's degree
Syllabus - What you will learn from this course
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
- 5 stars83.70%
- 4 stars11.97%
- 3 stars2.59%
- 2 stars0.61%
- 1 star1.11%
TOP REVIEWS FROM INVESTMENTS II: LESSONS AND APPLICATIONS FOR INVESTORS
Great sequel to the Investment I course, and dives into a lot of interesting finance research. Great course, and very engaging.
Professor Weisbenner is amazing! Insanely smart, yet delvers complex concepts in such a manner you would never realize it. This is a must take class for investments!
I could have known this course before 2009 recession to be a better investor and its great teaching of behavioral finance . This helped me to identify personal bias in investing .
Thanks Scott! Outstanding course with the research work papers analysis, animations and the fun made it easier for the longer lectures !
About the Financial Management Specialization
Frequently Asked Questions
When will I have access to the lectures and assignments?
What will I get if I subscribe to this Specialization?
Is financial aid available?
More questions? Visit the Learner Help Center.