Investment Analysis Portfolio Management

Financial Analysis Done Right - Rigorously Analyse Investments & Manage Portfolios using Excel® & Google Sheets

Last updated 2022-01-10 | 4.4

- Calculate stock returns manually as well as on Excel and Google Sheets
- using real world data obtained from free sources.
- Estimate the Expected Returns of Stocks using the Mean Method
- State Contingent Weighted Probabilities
- as well as Asset Pricing Models.
- Calculate the total risk
- market risk
- and firm specific risk of stocks from scratch
- and explore how the different risks interact.

What you'll learn

Calculate stock returns manually as well as on Excel and Google Sheets

using real world data obtained from free sources.

Estimate the Expected Returns of Stocks using the Mean Method

State Contingent Weighted Probabilities

as well as Asset Pricing Models.

Calculate the total risk

market risk

and firm specific risk of stocks from scratch

and explore how the different risks interact.

Understand why the math works

and why equations work the way they do - even if your math is weak and if math freaks you out.

Witness the power of diversification and how the risk of your portfolio can be lower than the individual assets that make up the portfolio!

Measure your investment portfolio's performance by calculating portfolio returns and risks.

Optimise your investment portfolios by maximising your returns while minimising your risk.

Decompose Diversification so you understand why it actually works (hint: it's the mathematical "magic" of Rho)

* Requirements

* No prior knowledge required. We start from the very basics. And build you to an Investment Analysis & Portfolio Management Guru.
* It's okay if math freaks you out. Seriously. Every single equation is explained one variable at a time. We rip it apart to its core
* and show you how simple it really is.
* Knowledge of basic statistical analysis is useful but NOT essential.
* You'll need a calculator
* access to Microsoft Excel® OR a Google account (Google Sheets).

Description

Say hello to Financial Analysis done right. You'll master sophisticated investment analysis and portfolio management techniques that are rigorously grounded in academic and practitioner literature.

Explore and master powerful relationships between stock prices, returns, and risk. Quantify and measure your investment risk, from scratch.

Discover what your financial advisor should be doing to manage your portfolio - to manage your investments.

Do all of this, and a whole lot more... manually, as well as on Excel® and Google Sheets, working with real world data.

There’s no prior knowledge required. We’ll start you from the very basics, and build you to a financial analysis PRO thanks to:

6 SECTIONS TO MASTERY (plus, all future updates included).

Introduction: Understanding Investment Security Relationships & Estimating Returns

Understanding powerful relationships between risk, return, and price.
Intuitively explore the baseline fundamental law of Financial Analysis - The Law of One Price.
Calculating stock returns for dividend and non-dividend paying stocks, manually.
Downloading and working with real world data, and estimating stock returns on Excel® / Google Sheets.

Estimating Expected Returns

Estimating expected returns using the average (mean) method.
Estimating expected returns using 'state contingent weighted probabilities'.
Estimating expected returns using Asset Pricing Models including the Capital Asset Pricing Model (CAPM).
You'll learn each approach theoretically AND practically, ensuring you fully understand why the formulas work the way they do, and that you're able to download relevant data and conduct the initial financial analysis by computing expected returns for any stock you want.

Understanding and Measuring Risk and Relationships

Estimating the total risk of a stock.
Estimating the market risk of a stock.
As a by-product of learning to measure the market risk, you'll also learn how to quantity the relationships between securities - something that will be a focal theme of portfolio management and investment / financial analysis.
As with the expected returns, you'll learn to measure risk manually as well as on Excel® / Google Sheets. Thanks to a solid understanding of why the equations work the way they do, you'll see how Google Sheets can get things wrong, and what you can do to make sure you conduct financial analysis without incorrect / inaccurate estimates.

Measuring Portfolio Risk and Return

Estimating the return of a 2 asset and multi-asset portfolio.
Measuring the risk of a 2 asset and multi-asset portfolio.
Discover the 3 factors that influence / impact portfolio risk - 1 of which is more important than the other two combined!

Exploring Diversification & Optimisation

Risk reduction by diversification.
Exploring Optimal Diversification - Number of Securities to Hold
Optimising portfolio weights to achieve a target expected return.
Minimising your portfolio risk (mathematically) using robust financial analysis techniques.

Decomposing Diversification

Investigate and explore why, fundamentally, diversification works for financial analysis / investment analysis.
Rethink the way you measure the relationships between securities for financial analysis by extending the current measure.
Explore precisely how and why the most important factor of risk influences / impacts portfolio risk.

DESIGNED FOR DISTINCTION

We've used the same tried and tested, proven to work teaching techniques that've helped our clients ace their exams and become chartered certified accountants, get hired by the most renowned investment banks in the world, and indeed, manage their own portfolios. Here's how we'll help you master financial analysis and turn you into an Investment Analysis & Portfolio Management PRO:

A Solid Foundation

You’ll gain a solid foundation of the core fundamentals that drive the entire investment analysis and portfolio management process. These fundamentals are the essence of financial analysis done right.

Example Walkthroughs

Every major concept is taught with example question walkthroughs, so you can literally see how we analyse investments and conduct rigorous financial analysis, one step at a time.

Loads of Practice Questions

Apply what you learn immediately with 150+ practice questions, all with impeccably detailed solutions.

Cheat Sheets & Resources

Mathematical proofs, one page cheat sheets, workable Excel® & Google Sheet spreadsheets – all included.

Say goodbye to information overload.

Engage with carefully thought out, clutter-free, and engaging study materials that focus on the 20% finance fundamentals that drive 80% of the results.

Easily follow through complex financial analysis concepts with great visuals that don’t overdo it.

Explore byte-sized lectures that don’t cut corners – so you receive the right amount of information which will hold you in good stead wherever you go, whatever you move on to do.

Watch your confidence grow.

Apply what you learn immediately in example question walkthroughs and progressively challenging quizzes with impeccably detailed solutions.

Engage with over 150 questions ranging from simple true and false ones to more complex problems that take you outside your comfort zone.

Questions are relevant for Ivy League / Russell Group University students studying any core Finance / Financial Analysis course, as well as professionals studying for the ICAEW CFAB, ACA, ACCA, and CFA qualifications.

All questions designed in-house, by Russell Group Distinction Tutors.

Finally understand why the math works.

Learn why we divide some variables by something, and multiply other variables by something else. Get past the painful approach of memorising countless equations. Not only will we rip apart each equation one variable at a time, we’ll also give you mathematical proofs that show the equation’s logic one step at a time. Save yourself time and effort by understanding why the equation works the way it does. Then go out and create your own equations, and redefine the way you conduct your own financial analysis.

Rigorously Analyse Investments & Manage Portfolios using Excel® & Google Sheets.

Enroll now and conduct your own financial analysis in a robust manner, from scratch.

Who this course is for:

ACA, ACCA, CFA®, other Professional students
Ivy League / Russell Group University students
Finance Managers keen on applying conceptual techniques including portfolio design.
Investors wanting to work with techniques that are rigorously grounded in academic and practitioner literature.
Analysts, and aspiring Investment Bankers wanting to gain a solid foundation in investment analysis.
Anyone who wants to learn investment analysis and portfolio management!

Course content

10 sections • 78 lectures

Before You Start... 4 lectures

Welcome to the Course. Here's What You're Going To Master. Preview 02:37

Welcome to Investment Analysis & Portfolio Management (with Excel®). Explore what you'll learn and master in this course!

Disclaimer Preview 00:10

Course FAQs Preview 01:35

Course pointers Preview 01:04

Special Announcement 1 lectures

Coronavirus [Special Announcement] Preview 01:38

Understanding Price, Risk, and Return Relationships & Calculating Returns 11 lectures

Price, Risk, and Return - Definitions & Relationships Preview 15:48

Learn about incredibly powerful relationships between Price, Risk, and Return. These relationships will guide our entire Investment Analysis and Portfolio Management process.

Price, Risk, and Return - Definitions & Relationships [Quiz]

What is Shorting? Preview 09:44

Often considered "complicated" and counterintuitive, understanding shorting is pivotal to any sort of financial analysis. In this video, you'll see exactly what it is and how it works; and most importantly, how dangerous it can be.

What is Shorting? [Quiz]

Calculating Stock Returns Preview 13:03

Learn how to calculate stock returns from scratch (manually), and understand the underlying rationale and intuition behind the stock return formula.

Calculating Stock Returns [Quiz]

Calculating Stock Returns II (Applied) Preview 11:03

Build on your knowledge of calculating stock returns by working with real world financial data. You'll learn how to calculate stock returns on Excel® and Google Sheets.

Calculating Stock Returns II (Applied) [Assignment]

The objective of this assignment is to help you get comfortable with downloading financial datasets and conduct some basic computations, in this case, calculating returns.

Variable Notations & Descriptions Cheat Sheet Preview 00:28

Learning Experience Testing and Feedback Preview 00:38

Section Conclusion & Additional Insights Preview 06:03

Estimating Expected Returns 12 lectures

Expected Returns using Average (Mean) Method Preview 19:12

Investing decisions are based on future expectations. Learn how to estimate 'Expected Returns', starting with the the easiest method - the Mean / Average Method

Expected Returns using Average (Mean) Method [Quiz]

Expected Returns using Average (Mean) Method [Assignment]

The objective of this assignment is to further strengthen your ability of dealing with real world data. You'll apply your knowledge of calculating returns and expected returns using data for Apple Inc. (AAPL).

Expected Returns using State Contingent Weighted Probabilities Preview 15:22

Explore how to estimate Expected Returns when the economy could be in a recession, boom, or other 'state'.

Expected Returns using State Contingent Weighted Probabilities [Quiz]

Expected Returns using State Contingent Weighted Probabilities [Assignment]

This assignment will help you get confident with using real world data and estimating state contingent weighted probabilities.

Expected Returns using Asset Pricing Models I Preview 17:11

Overcome the limitations of the mean method and state contingent based methods by learning how to estimate expected returns using state of the art, industry relevant Asset Pricing Models.

Expected Returns using Asset Pricing Models I [Quiz]

Expected Returns using Asset Pricing Models I (Applied) Preview 10:19

Apply your theoretical knowledge by estimating the expected return of a stock using real world data and the Capital Asset Pricing Model ("CAPM").

Expected Returns using Asset Pricing Models I (Applied) [Quiz]

Expected Returns using Asset Pricing Models II Preview 15:41

Explore more robust Asset Pricing Models including the Fama-French 3 factor model, Carhart 4 factor model, and Fama-French 5 factor model, in addition to looking at other factors that influence returns.

Expected Returns using Asset Pricing Models II [Quiz]

Understanding and Measuring Risk & Relationships 9 lectures

Estimating The Total Risk of a Stock I Preview 20:36

Investments are risky. But how do we measure the risk? We'll start from scratch, so you understand the logic and rationale behind the measure.

Estimating The Total Risk of a Stock I [Quiz]

Estimating The Total Risk of a Stock II - Applied Preview 15:25

Apply your knowledge of measuring total risk by calculating the risk of a stock using real-world data on Excel®.

Estimating The Total Risk of a Stock II - Applied [Assignment]

This assignment will help you gain confidence with measuring the total risk of a stock, working with real world data.

Estimating The Market Risk of a Stock I Preview 13:46

Learn how to measure the market risk of a stock - the risk that no one can eliminate, no matter what. As a by-product of this, you'll also learn how to quantify the relationships between securities - something that will become imperative when we learn to manage investment portfolios.

Estimating The Market Risk of a Stock I [Quiz]

Estimating The Market Risk of a Stock II - Applied Preview 16:07

Work with real-world data and measure the market risk of a stock from scratch, as well as using functions on Excel® and Google Sheets. Plus, see how spreadsheets can get it wrong sometimes, and why knowing what formulas are doing is imperative for great investment analysis and portfolio management.

Estimating The Market Risk of a Stock II - Applied [Assignment]

In this assignment, you'll apply your knowledge of estimating the market risk of a stock by working with some real world data.

Estimating Firm Specific Risk Preview 01:26

Measuring Investment Portfolio Returns and Risk 9 lectures

IMPORTANT: Changes to Keyboard Shortcuts Preview 00:19

Estimating Portfolio Returns Preview 18:19

Learn how to calculate portfolio returns from scratch, starting with a simple 2 asset case and then moving on to the multi-asset case. And of course, you'll see precisely why the equation works the way it does.

Estimating Portfolio Returns [Quiz]

Estimating Portfolio Risk I (2 Assets) Preview 16:50

Analysing our de-facto equation for risk - the standard deviation - will result in seeing something incredibly interesting indeed. You'll see exactly how (and why) the risk of a portfolio is impacted by 3 factors.

Estimating Portfolio Risk I (2 Assets) [Quiz]

Estimating Portfolio Risk II (Multiple Assets) Preview 11:43

As with the 2 asset case, the risk of a multi-asset portfolio is impacted by 3 factors. Solving for the equation algebraically however, is inefficient. See how we optimise and use matrix math to make our lives easier when it comes to calculating the risk of multi-asset portfolios. This technique will build the foundation for more advanced concepts in Investment Analysis & Portfolio Management that we'll cover later on.

Estimating Portfolio Risk II (Multiple Assets) [Quiz]

Estimating Portfolio Risk II (Multiple Assets) - Applied Preview 15:04

Explore real-world applications of the estimation of portfolio risk, as we walk you through calculating the risk of a 10 asset portfolio using data from Google Sheets, working on Excel®.

Estimating Portfolio Risk [Assignment]

The objective of this assignment is to help you get master risk computations in k asset portfolios.

Mastery Check & Setup for the Next Phase 5 lectures

Take a breather! Preview 04:07

You've come a long way so far! It's time for a bit of a breather, and time to reflect. Keep an eye out for a hint we may or may not give you during this video!

Insights by Fervent [Special Feature] Preview 01:32

A special gift for you awaits. Explore a special feature research paper (Insights by Fervent series)

Test Guidelines [READ BEFORE YOU START THE TEST] Preview 01:26

We can't stress this enough - read the test guidelines before you take the test!

A Test Towards Mastery

This test is designed to help you test your knowledge and skills in the context of the concepts we've covered so far.

After this test, we'll be exploring some relatively more advanced and complex concepts. That is why it's important for you to take this test, and do well in it.

Please ensure you've read the 'Test Guidelines' before you take the test.

You'll need to score 50% to pass the test, and can consider yourself to be of Distinction Level if you score 80% or more.

Installing Solver Preview 00:48

Exploring The Effects of Diversification & Investment Portfolio Optimisation 13 lectures

Reducing Portfolio Risk by Diversification Preview 15:49

Explore how to reduce risk by diversification, and discover exactly how it works.

Reducing Portfolio Risk by Diversification [Quiz]

Optimal Diversification - Number of Securities to Hold Preview 11:51

Diversification is important, sure. But how much should you diversify? Start to explore one of the most interesting challenges in Investment Analysis & Portfolio Management - optimal diversification.

Optimal Diversification - Number of Securities to Hold [Quiz]

Optimising Weights To Achieve A Target Return I Preview 16:40

Explore how you can optimise your portfolio weights to achieve a target expected return.

Optimising Portfolio Weights to Achieve a Target Return I [Quiz]

Optimising Weights To Achieve A Target Return II - Applied Preview 10:55

Build on your knowledge and apply Excel's® Solver tool to optimise weights of a multi-asset portfolio to achieve a target expected return.

Optimising Weights To Achieve A Target Return II - Applied [Quiz]

Minimising Portfolio Risk - 2 Assets Preview 20:14

Explore one of the most powerful concepts of Investment Analysis and Portfolio Management. Discover how you can not only control - but actually minimise your portfolio risk, from scratch.

Minimising Portfolio Risk - 2 Assets [Quiz]

Minimising Portfolio Risk - Multiple Assets, Applied Preview 14:48

Work with real-world data while you learn how to minimise the risk of a multi-asset portfolio!

Minimising Portfolio Risk - Multiple Assets [Quiz]

Optimising Portfolio Weights [Assignment]

Please note: Assignment 6 (Estimating Portfolio Risk) is a pre-requisite to this assignment. This assignment gives you the opportunity to apply your knowledge to optimise your portfolio weights to achieve a specific objective.

Decomposing Diversification - Investigating Why It Works 11 lectures

A Bit Puzzling? Preview 09:14

We ended up with some pretty remarkable results while minimising the risk of our portfolio. But those results created 3 (seemingly) counterintuitive puzzles. Explore what these 3 puzzles are.

Correlation of Securities Preview 16:26

Rethink the way you measure security relationships by exploring the Correlation, and how this one simple number allows us to explicitly explore the strength of relationships between securities.

Correlation of Securities [Quiz]

Estimating Correlation - Applied Preview 15:47

Learn how to estimate the Correlation on Excel® - manually, as well as by using the built in function and tools within Excel®.

Estimating Correlation - Applied [Quiz]

Correlation and Risk Preview 17:53

Diversification is probably the most popular aspect of Investment Analysis and Portfolio Management. But not many people know why diversification actually works. In this lecture, you'll explore why correlation reduces portfolio risk and prove it mathematically.

Correlation and Risk [Quiz]

Correlation, Risk, and Returns Preview 22:24

Build on the formal proof by exploring how correlation, risk, and returns interact, visually.

Correlation Risk and Returns [Quiz]

Solving the "Puzzles" Preview 10:15

When puzzles aren't really puzzles anymore. Decrypt the puzzles and explore just how intuitive those seemingly counterintuitive results actually are! Naturally, this is going to change the way you look at Investment Analysis & Portfolio Management forever.

Exploring the Puzzles [Assignment]

This assignment gives you the opportunity to explore how correlation, risk, and return interact.