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Investments II: Lessons and Applications for Investors
  • Level Foundation
  • المدة 20 ساعات hours
  • الطبع بواسطة University of Illinois Urbana-Champaign
  • Offered by

عن

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. Learners are welcome to take this course even if they have not completed "Investments I: Fundamentals of Performance Evaluation," as the first module contain a review of investment fundamentals and regression analysis to get everyone up to speed. Also, the course contains several innovative features, including creative out-of-the-studio introductions followed by quick-hitting "Module in 60" countdowns that highlight what will be covered in each module, four "Faculty Focus" interview episodes with leading professors in finance, and a summary of each module done with the help of animations! The over-arching goals of this course are to provide a review of the fundamentals of investments and then assess the historical performance of several groups of investors, with an emphasis on research findings with clear real-world applications. Specifically, upon successful completion of this course, you will be able to: - Interpret and use the CAPM and the 3-Factor Model to evaluate the performance of investments - Compare returns in the form of dividends and capital gains and their tax consequences - Describe evidence regarding the performance of individuals' stock investments - Understand key behavioral biases of investors and their effects on financial decisions - Describe evidence regarding the performance of actively-managed mutual funds - Evaluate strategies designed to "earn alpha" This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

الوحدات

About the Course

    • 5 Videos
    • 7 Readings
    • 1 Quiz
Show info about module content

5 Videos

  • Welcome to Investments II: Lessons and Applications for Investors (the launching of a sequel)!
  • Get to know Scott (introductory video used for his iMBA course)
  • See the “Movie Trailer” for Scott’s Course!
  • Learn on Your Terms
  • The Impact of the Gies Community

7 Readings

  • Syllabus
  • Video Lecture Transcripts
  • A Preview of Coming Attractions: Introduction Videos for Modules 1-4
  • What You Will Learn: Course Summary with Animations
  • Learning from the Experts: Full Collection of Faculty Focus Episodes
  • About the Discussion Forums
  • Online Education at Gies College of Business

1 Quiz

  • Orientation Quiz

About Your Classmates

    • 1 Readings
    • 1 Discussion
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1 Discussions

  • Getting to Know Your Classmates

1 Readings

  • Updating Your Profile

Module 1 Information

    • 1 Videos
    • 3 Readings
Show info about module content

1 Videos

  • Module 1 Introduction ("High Stakes Poker Game" and Module in 60)

3 Readings

  • Module 1 Overview
  • Module 1 Readings
  • Module 1 Spreadsheet

Lesson 1-1: Review of Fundamentals of Investments

    • 5 Videos
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5 Videos

  • 1-1.1. Basics of Return and Risk
  • 1-1.2. Capital Asset Pricing Model (CAPM)
  • 1-1.3. 3-Factor Model and Market Efficiency
  • 1-1.4. Interpretation of Regression Model Results
  • 1-1.5. Regression Analysis of Returns to Small-Value Stocks

Lesson 1-2: Composition of Returns

    • 3 Videos
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3 Videos

  • 1-2.1. Dividends, Capital Gains, and Firm Payout Policy
  • 1-2.2. Realization-Based Capital Gains Tax
  • 1-2.3. Seasonality in Stock Returns

Module 1 Summary and Graded Quiz

    • 1 Videos
    • 1 Quiz
Show info about module content

1 Videos

  • Summary of Module 1 with Animations

1 Quiz

  • Module 1 Quiz

Module 2 Information

    • 1 Videos
    • 2 Readings
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1 Videos

  • Module 2 Introduction ("Talking Retirement Plans in the Playroom" and Module in 60)

2 Readings

  • Module 2 Overview
  • Module 2 Readings

Lesson 2-1: Key Biases in Investment Decisions

    • 9 Videos
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9 Videos

  • 2-1.1. Overview of Key Biases in Decisions
  • 2-1.2. Representativeness
  • 2-1.3. Familiarity Bias and Background Risk
  • 2-1.4. Endorsement Effects
  • 2-1.5. Naïve Diversification
  • 2-1.6. Inertia
  • 2-1.7. Option Confusion
  • 2-1.8. Power of Defaults
  • 2-1.9. Bottom Line on Biases in Investment Decisions

Lesson 2-2: Annuities

    • 1 Videos
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1 Videos

  • 2-2.1. Faculty Focus with Dean Jeffrey Brown (interview)

Module 2 Summary and Graded Quiz

    • 1 Videos
    • 1 Quiz
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1 Videos

  • Summary of Module 2 with Animations

1 Quiz

  • Module 2 Quiz

Module 3 Information

    • 1 Videos
    • 2 Readings
Show info about module content

1 Videos

  • Module 3 Introduction ("Picking a Portfolio at the Pub" and Module in 60)

2 Readings

  • Module 3 Overview
  • Module 3 Readings

Lesson 3-1: Overview of the Performance of Individual Investors

    • 1 Videos
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1 Videos

  • 3-1.1. Overview of the Performance of Individual Investors

Lesson 3-2: Key Behavioral Biases of Individual Investors

    • 9 Videos
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9 Videos

  • 3-2.1. Overconfidence
  • 3-2.2. Loss Aversion
  • 3-2.3. Effects of Loss Aversion (Part 1): Loss Aversion & Tax Incentives for Stock Trades
  • 3-2.4. Effects of Loss Aversion (Part 2): Personal Connection to Asset
  • 3-2.5. Effects of Loss Aversion (Part 3): Corporate Finance Decisions
  • 3-2.6. Faculty Focus with Professor Yuhai Xuan (interview)
  • 3-2.7. Effects of Loss Aversion (Part 4): Explanation for Momentum?
  • 3-2.8. Effects of Loss Aversion (Part 5): Importance of Endowment
  • 3-2.9. Emotion and Financial Decisions

Lesson 3-3: Any Skill on Part of Individual Investors?

    • 2 Videos
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2 Videos

  • 3-3.1. Local Investments
  • 3-3.2. Changing Nature of Individual Investors?

Module 3 Summary and Graded Quiz

    • 1 Videos
    • 1 Quiz
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1 Videos

  • Summary of Module 3 with Animations

1 Quiz

  • Module 3 Quiz

Module 4 Information

    • 1 Videos
    • 2 Readings
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1 Videos

  • Module 4 Introduction ("Reliving Past Glory with a Visit to the Track" and Module in 60)

2 Readings

  • Module 4 Overview
  • Module 4 Readings

Lesson 4-1: Performance of Mutual Funds

    • 4 Videos
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4 Videos

  • 4-1.1. Overview of Performance of Mutual Funds
  • 4-1.2. Fees and Fund Performance
  • 4-1.3. Brokers and Fund Performance
  • 4-1.4. Trends in Mutual Fund Industry

Lesson 4-2: Search for Alpha

    • 9 Videos
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9 Videos

  • 4-2.1. Introduction to Search for Alpha
  • 4-2.2. Mutual Fund Disclosure
  • 4-2.3. Mutual Funds and Local Investments
  • 4-2.4. Information Networks and Performance
  • 4-2.5. Closet Indexing and Performance Persistence
  • 4-2.6. Valuing Complicated Firms and Exploiting Inattention
  • 4-2.7. Faculty Focus with Professor Joshua Pollet (interview)
  • 4-2.8. Potential Modern Sources of Information
  • 4-2.9. Faculty Focus with Professor Jiekun Huang (interview)

Lesson 4-3: Economics of Industry and International Evidence

    • 2 Videos
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2 Videos

  • 4-3.1 Economics of Mutual Funds
  • 4-3.2 International Evidence on Active Mutual Fund Management

Module 4 Summary and Graded Quiz

    • 1 Videos
    • 1 Quiz
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1 Videos

  • Summary of Module 4 with Animations

1 Quiz

  • Module 4 Quiz

Course Conclusion

    • 1 Videos
    • 2 Readings
    • 1 Discussion
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1 Discussions

  • Final Reflections

1 Videos

  • Conclusion of Investments II (and farewell from Scott!)

2 Readings

  • Congratulations on completing the course!
  • Get Your Course Certificate

Auto Summary

Boost your investment acumen with "Investments II: Lessons and Applications for Investors." This business and management course, taught by top finance professors, delves into asset pricing models, stock returns, behavioral biases, and mutual fund performance. Ideal for learners with or without prior investment experience, it features engaging content like "Module in 60" countdowns and animated summaries. Part of the University of Illinois' iMBA program, this 1200-minute course offers starter, professional, and paid subscription options, providing practical insights for investors seeking to enhance their portfolio strategies.

Gies College of Business, University of Illinois
Instructor

Gies College of Business, University of Illinois