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Free video course

Investment Theory

A free video course on how markets work, risk and return, and building a portfolio.

  • 38 lessons
  • 10 chapters
  • 3h 5m
  • Beginner to intermediate
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What you’ll learn

  • How markets work
  • The relation between risk and return
  • How to evaluate the performance of a portfolio
  • How to create an optimal portfolio
  • The basics of fixed-income securities

About this course

The primary objective of this course is to give you a broad overview of the field of investments and an introduction to the process of investing, both in theory and in practice.

Investing is usually divided into two parts: portfolio management and security analysis. Portfolio management combines securities into a portfolio tailored to your preferences and needs, monitors it, and evaluates its performance; modern portfolio theory (MPT) is at its core. Security analysis tries to determine whether an individual security, or a whole market or segment, is correctly valued. In other words, it is the search for mispriced assets.

Course content

38 lessons · 10 chapters · 3h 5m · Your progress is saved in this browser only.

01 Chapter 1 Investment Background and Issues 4 lessons · 13m
  1. What is an investment? 3:52
  2. Difference between Real and Financial assets 2:40
  3. What is an investment process? 3:24
  4. Average return in the US stock market 3:23
02 Chapter 2 Asset Classes and Financial Instruments 6 lessons · 28m
  1. What are the asset classes? 7:38
  2. How to calculate Equivalent Taxable Yield 2:25
  3. How to calculate Treasury bond price and yield 2:19
  4. How to calculate Price Weighted Index 6:17
  5. How to calculate the Value-Weighted Index 4:25
  6. Profit and Returns on Stock Options 4:50
03 Chapter 3 Securities Market 4 lessons · 13m
  1. What is Short selling? 3:02
  2. Margin Trading basics 2:46
  3. Margin trading in a bullish market 4:13
  4. How to short sell in a margin account 2:38
04 Chapter 4 Risk Return and Historical Record 4 lessons · 35m
  1. Risk and Return: All you need to know 14:12
  2. How to calculate expected return and standard deviation 3:47
  3. How to calculate Time Weighted and Dollar Weighted return 6:49
  4. How to measure the risk of Apple Inc. in Excel 10:08
05 Chapter 5 Equity Valuation 3 lessons · 5m
  1. What is Free Cash Flow? 1:26
  2. How to calculate the market value of equity using DCF and FCFE 1:54
  3. How to estimate the price of a stock using CAPM 1:57
06 Chapter 6 Bond Price and Yields 8 lessons · 21m
  1. How to calculate bond price 3:47
  2. How to calculate the price of a semi-annual bond 2:38
  3. How to calculate the YTM of a bond 3:10
  4. How to calculate the invoice price of a bond 3:04
  5. How to calculate the price and yield of a zero-coupon bond 2:44
  6. How to calculate the holding period return of a bond 1:51
  7. How to calculate the effective annual interest rate (EAR) 2:01
  8. How to calculate the bond equivalent yield and effective annual yield 2:00
07 Chapter 7 Managing Bond Portfolio 5 lessons · 16m
  1. How to calculate the Macaulay Duration of a bond 2:46
  2. Macaulay Duration using the weighted average method 3:02
  3. How to calculate the change in bond price with the change in yield 1:41
  4. Bond portfolio immunization strategy 5:08
  5. How to calculate the bond duration with the convexity rule 3:34
08 Chapter 8 Effective Diversification 2 lessons · 33m
  1. How to calculate optimal portfolio using Excel- two stocks 15:16
  2. How to calculate optimal portfolio using Excel- five stocks 17:35
09 Chapter 9 Efficient Market Hypothesis 1 lesson · 12m
  1. Efficient Market Hypothesis (EMH)- basics 12:24
10 Chapter 10 Options Markets 1 lesson · 8m
  1. Options markets for beginners 8:16

Put the theory into practice

See how I apply these ideas with my own money in two rules-based ETF portfolios.

Logic Max Logic Core