#3 Don't Put All Your Eggs in One Basket: Risk, Return, and Portfolio Theory
Master the statistical foundations of measuring risk and return, and discover the magic of the 'Portfolio Effect'—reducing risk through diversification.
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Master the statistical foundations of measuring risk and return, and discover the magic of the 'Portfolio Effect'—reducing risk through diversification.
Learn how companies decide on major investments. Master the Net Present Value (NPV) and Internal Rate of Return (IRR) methods to evaluate the feasibility of business projects.
Understand how companies decide to distribute wealth. Learn about the 'Dividend Irrelevance' theory, the signaling effect of payouts, and the strategic choice between dividends and share buybacks.
Understand the mechanics of the global financial system. Learn about Exchange Rate determination, Purchasing Power Parity (PPP), and how to manage the risks and opportunities of doing business acro...
An introduction to the history, core concepts, and the role of 'quants' in modern finance.
Understand the fundamental concept of compounding and discounting, and how the value of money changes across time.
Learn the core concepts of derivatives and how forward contracts are used to manage price risk in an uncertain future.
Understand the fundamental concepts of Call and Put options, and visualize the asymmetric profit/loss structures for buyers and sellers based on price movements.
Understand the fundamental assumptions of the Nobel Prize-winning Black-Scholes model and mathematically analyze how stock prices, time, and volatility affect option prices.
Learn about the Greek letters that quantify the impact of changes in underlying asset price, time, and volatility on option prices, and understand risk hedging techniques using them.