Learning Notes for "Investments I: Fundamentals of Performance Evaluation" - 知乎 7/27/21, 9(11 PM
Learning Notes for "Investments I:
Fundamentals of Performance
Evaluation"
This is a memo for what I've learned in the course:
Investments I: Fundamentals of Performance Evaluation.
This is the third course of the "Financial Management" specialization on
Coursera.
Finished at 2018.4.29 20G42, 97.1/100.
It seems this course is for real, as it has a collection of lecture videos of over
20 hours.
I'm expecting to learning a lot from it, that's why I feel obliged to take some
notes.
I won't be hold responsible for the opinions put in here, as I'm a fresh
learner in finance and investments.
You shouldn't expect anything professional or authoritative from a learner
anyway.
Don't upvote unless you think what I'm saying totally makes sense.
Chapter 1: Investments Tool Kit and Portfolio
Formation
Q. The lecturer is professor Scott Weisbenner. I have great respect for
anyone with a PhD degree from MIT, I really do.
T. He's rather humorous, that's good.
https://zhuanlan.zhihu.com/p/35523831 Page 1 of 9
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, Learning Notes for "Investments I: Fundamentals of Performance Evaluation" - 知乎 7/27/21, 9(11 PM
V. This course is for real, you better be ready to take the efforts.
W. Given the interest rate formula,
, the simple interest is the first-degree term in the polynomial, while the
part is the compound interest.
Z. Risk aversion, value discounting, no arbitrage, it's the basic rules.
\. Higher risk, higher return, higher volatility. Higher , higher .
]. Combination of assets in a portfolio is like combination of random
variables, you seek to reduce variance, while aiming at keeping a high
expectation.
^. Given the linear combination of a random variable X and a constant Y,
Sharpe ratio is defined as
, where X being the risky asset and Y being the risk-free one.
`. Treasury bills re within 1 year, treasury bonds are for longer term.
Qa. Betting on something is called "long", betting against something is
called "short".
QQ. Dominated assets are not Pareto efficient.
QT. While it seems that choosing dominated assets is totally stupid, it's not
so obvious when applied in real life scenarios.
QV. We have a bunch of crooks playing another bunch of schmucks in the
trading market, although from a statistical point of view, the market is
not beaten. People get rich, people get robbed blind, people are just
people.
QW. That's why you don't buy the word from a stock broker or a hedge fund
manager. The annual premium you pay is solid for him, the annual
return they generate might not be the same for you. Learn about LTCM.
QZ. When considering linear combination of multiple portfolios, this
becomes a non-trivial optimization problem.
Q\. It feels weird when you're so used to interactive programming tools like
Jupyter Notebook or MATLAB and try to use Excel to solve problems. I
https://zhuanlan.zhihu.com/p/35523831
This study source was downloaded by 100000815611969 from CourseHero.com on 01-18-2023 00:31:35 GMT -06:00 Page 2 of 9
https://www.coursehero.com/file/101649403/Class-Notes-for-Investments-I-Fundamentals-of-Performance-Evaluationpdf/
Learning Notes for "Investments I:
Fundamentals of Performance
Evaluation"
This is a memo for what I've learned in the course:
Investments I: Fundamentals of Performance Evaluation.
This is the third course of the "Financial Management" specialization on
Coursera.
Finished at 2018.4.29 20G42, 97.1/100.
It seems this course is for real, as it has a collection of lecture videos of over
20 hours.
I'm expecting to learning a lot from it, that's why I feel obliged to take some
notes.
I won't be hold responsible for the opinions put in here, as I'm a fresh
learner in finance and investments.
You shouldn't expect anything professional or authoritative from a learner
anyway.
Don't upvote unless you think what I'm saying totally makes sense.
Chapter 1: Investments Tool Kit and Portfolio
Formation
Q. The lecturer is professor Scott Weisbenner. I have great respect for
anyone with a PhD degree from MIT, I really do.
T. He's rather humorous, that's good.
https://zhuanlan.zhihu.com/p/35523831 Page 1 of 9
This study source was downloaded by 100000815611969 from CourseHero.com on 01-18-2023 00:31:35 GMT -06:00
https://www.coursehero.com/file/101649403/Class-Notes-for-Investments-I-Fundamentals-of-Performance-Evaluationpdf/
, Learning Notes for "Investments I: Fundamentals of Performance Evaluation" - 知乎 7/27/21, 9(11 PM
V. This course is for real, you better be ready to take the efforts.
W. Given the interest rate formula,
, the simple interest is the first-degree term in the polynomial, while the
part is the compound interest.
Z. Risk aversion, value discounting, no arbitrage, it's the basic rules.
\. Higher risk, higher return, higher volatility. Higher , higher .
]. Combination of assets in a portfolio is like combination of random
variables, you seek to reduce variance, while aiming at keeping a high
expectation.
^. Given the linear combination of a random variable X and a constant Y,
Sharpe ratio is defined as
, where X being the risky asset and Y being the risk-free one.
`. Treasury bills re within 1 year, treasury bonds are for longer term.
Qa. Betting on something is called "long", betting against something is
called "short".
QQ. Dominated assets are not Pareto efficient.
QT. While it seems that choosing dominated assets is totally stupid, it's not
so obvious when applied in real life scenarios.
QV. We have a bunch of crooks playing another bunch of schmucks in the
trading market, although from a statistical point of view, the market is
not beaten. People get rich, people get robbed blind, people are just
people.
QW. That's why you don't buy the word from a stock broker or a hedge fund
manager. The annual premium you pay is solid for him, the annual
return they generate might not be the same for you. Learn about LTCM.
QZ. When considering linear combination of multiple portfolios, this
becomes a non-trivial optimization problem.
Q\. It feels weird when you're so used to interactive programming tools like
Jupyter Notebook or MATLAB and try to use Excel to solve problems. I
https://zhuanlan.zhihu.com/p/35523831
This study source was downloaded by 100000815611969 from CourseHero.com on 01-18-2023 00:31:35 GMT -06:00 Page 2 of 9
https://www.coursehero.com/file/101649403/Class-Notes-for-Investments-I-Fundamentals-of-Performance-Evaluationpdf/
