Oct 10th 2016

Principles of Valuation: Risk and Return (Coursera)

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This second course in the specialization will last six weeks and will focus on the second main building block of financial analysis and valuation: risk. The notion of risk and statistics are intimately related and we will spend a fair amount of time on the development of some statistical concepts and tools, namely distribution theory and regression analysis. This time will be well spent because these concepts and tools are also commonly used in many applications in the real world. The foundational idea of diversification will then be used to develop a framework for evaluating risk and establishing a relationship between risk and return. Apart from developing a keen appreciation of risk for making thoughtful decisions in an institutional context, this course will contain a lot of material and examples that will enable the learner to make smart personal investing decisions.

The course will again have time included for assimilation and two final exams.

This course is the second in a sequence of four courses, followed by a Capstone Project that comprise a Specialization on Valuation & Investing.

Principles of Valuation: Risk and Return is course 2 of 5 in the Introduction to Finance: Valuation and Investing Specialisation.

Evaluate risk and reward, assess alternatives, and determine the value of a project or company. This Specialization builds on the success of the Introduction to Finance course and provides a rigorous introduction to core topics in financial valuation, including time value of money, cash flow analysis, asset pricing, and risk and return. In the final Capstone Project, you’ll apply your skills to research, analyze, and value a real-world enterprise.