1. Introduction to Financial Markets
In this course you will learn the general concepts of financial markets. You will see the difference between primary and secondary markets and learn about markets for different financial products. You will also look at various economic indicators and their influence on the markets. After completing this course, you will have a much stronger background in financial markets and you will be ready to go to the next stage in the Specialization. This course is designed to help students with very little or no finance background to learn the basics of investments.
2. Portfolio and Risk Management
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 you will 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.
3. Behavioral Investing
Through this course, you will learn how individuals and firms make financial decisions, and how those decisions might deviate from those predicted by traditional finance or economic theory. We will explore the nature of these biases and their origins, using insights from psychology, neurosciences and experimental economics on how the human mind works. From these biases, you will be able to examine how the insights of behavioral finance complement the traditional finance paradigm. Finally, you will explore how these insights describe more complicated topics such as fat tail events and financial crises.
4. Investment Strategy, Philosophy, Client Management and Current Trends
Discover the basic concepts of need analysis, investment policy, asset allocation, product selection, portfolio monitoring and re-balancing. We will look at the types of institutional investors - pension funds and insurance companies. You will learn the client management life cycle and dive into portfolio management as a process. You will learn the basic concepts, principles, and the major styles of investing in alternative assets. Finally, we study the impact of digitization on investment strategies.
5. Capstone Project
In the Capstone project, you have to design an investment plan for an individual at three different stages of his life. Depending on the stage of his life, the individuals biases, risk preferences and wealth requirements change. You have to keep in mind all of these and design an appropriate investment plan for each stage of his life. You will use the concepts learned in the 4 courses to achieve this target. You should consider different assets and different markets to achieve the investors goals by building an optimal portfolio which matches his profile. In the end you should also evaluate the performance of his portfolio.