Back to Investments II: Lessons and Applications for Investors
University of Illinois Urbana-Champaign

Investments II: Lessons and Applications for Investors

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.

Status: Finance
Status: Portfolio Management
IntermediateCourse20 hours

Featured reviews

TB

5.0Reviewed Nov 1, 2021

G​reat sequel to the Investment I course, and dives into a lot of interesting finance research. Great course, and very engaging.

AC

5.0Reviewed Dec 13, 2016

Excellent class! Very useful information for investing. Great faculty focus sessions with UIUC researchers!. Also love the passion that Dr. Weisbenner displays in teaching. Would highly recommend!

TP

5.0Reviewed Mar 22, 2017

Thank you, Professor Scott Weisbenner, for an excellence course that you put your heart and passion (for Star Wars) into.

SS

5.0Reviewed May 9, 2020

Thanks Scott! Outstanding course with the research work papers analysis, animations and the fun made it easier for the longer lectures !

GB

5.0Reviewed Feb 6, 2020

Excellent course. Dr. Weisbenner truly cares for the course. This was one of the best online courses I have taken. Well prepared course.

JP

5.0Reviewed Apr 4, 2021

I am very thankful for the opportunity to join with you this excelent course because of diferents resources and instersting subjects widely explained by Prof. Scott.

HA

4.0Reviewed Dec 9, 2019

Good overall material covered however I believe the number and duration of videos were excessive for an online course. Took significantly longer than other coursera courses to complete.

DH

5.0Reviewed Mar 12, 2018

Professor Weisbenner is phenomenal! The course material is accessible, very well presented, highly informative, and can be applied for the rest of your life.

WK

5.0Reviewed Mar 22, 2021

Great course with excellent, relevant content and entertaining presentation. Whish there were more like this in the series.

AA

5.0Reviewed May 11, 2020

Great course! It is clear that it took a lot of time and effort to prepare such quality material. Completely worth it!

MN

5.0Reviewed Dec 12, 2020

Very good introduction of some comedy compared to Investments I. The early review of fundamentals and in-depth discussion and teachings about investment topics were much appreciated.

MC

5.0Reviewed Jun 15, 2020

it was an excellent course. Professor Scott Weisbenner has a unique and an interactive style of teaching. I thoroughly enjoyed this course

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