Advanced Investments

This is an advanced course for investors in the market, covering cutting-edge investment principles and practices used by professionals. You learn hands-on techniques for analyzing the central problem of investing: How to determine if a potential investment is a good deal. Employing concepts from probability and statistics, you learn how to measure risk accurately. Then you explore methods for determining if a given security, such as a stock or bond, will generate returns that compensate for its risk. Throughout these 24 in-depth lectures, you weigh the relative advantages of active and passive investment strategies. An active approach takes advantage of mispriced securities that can be traded for a profit. A passive strategy seeks to build a well-diversified portfolio that can be put on automatic pilot. Many investors combine these strategies, and Professor Slezak takes you through a wide range of cases that show how to devise a balanced approach. His many useful tips include how to avoid the most common mistakes that investors make, why you should think in terms of net present value in evaluating a company, how to combine securities in order to control risk, and the importance of analyzing an investment before you act. Professor Slezak is an expert who knows how to communicate effectively. He enlivens his presentation with colorful anecdotes and object lessons from the recent history of Wall Street. His parting advice: Don't be afraid of the market. Nothing is a sure thing, he stresses, but the market has performed consistently over the long term.

All Lectures:
1. Investment Decisions and Goals
2. A Framework for Investing
3. Mistakes Investors Make
4. The Characteristics of Security Returns
5. The Theory of Efficient Markets
6. Evidence on Efficient Markets
7. Valuation Formulas
8. Bond Pricing
9. The Term Structure of Interest Rates
10. The Risks in Bonds
11. Quantifying Interest Rate Risk
12. Value Creation and Stock Prices
13. Present Value of Growth Opportunities
14. Modeling Investor Behavior
15. Managing Risk in Portfolios
16. The Behavior of Stock Prices
17. The Capital Asset Pricing Model (CAPM)
18. How to Exploit Mispriced Securities
19. Performance Evaluation
20. Market Making and Liquidity
21. Understanding Derivatives
22. Using Derivatives
23. Pricing Derivatives
24. Trade Opportunities or Risk?