Portfolio and Risk Management from Coursera

In this course, you will gain an understanding of the theory underlying optimal portfolio construction, the different ways portfolios are actually built in practice and how to measure and manage the risk of such portfolios.

You will start by studying how imperfect correlation between assets leads to diversified and optimal portfolios as well as the consequences in terms of asset pricing. Then, you will learn how to shape an investor's profile and build an adequate portfolio by combining strategic and tactical asset allocations. Finally, you will have a more in-depth look at risk: its different facets and the appropriate tools and techniques to measure it, manage it and hedge it.

Key speakers from UBS, our corporate partner, will regularly add a practical perspective on these different topics as you progress through the course.

What's inside

Syllabus

General Introduction and Key Concepts

In this introductory week, you will first be presented with a few mistakes you will no longer make after following this course. In order to avoid making these mistakes, you will start by gaining a foundation and understanding of the three main types of information we need in order to build optimal portfolios: expected returns, risk and dependence.

Modern Portfolio Theory and Beyond

The focus of this second week is on Modern Portfolio Theory. By understanding how imperfect correlations between asset returns can lead to superior risk-adjusted portfolio returns, we will soon be looking for ways to maximize the effect of diversification, which is at the heart of Modern Portfolio Theory. But we won’t stop there: we will also explore the implications of Modern Portfolio Theory on real-world investment decisions and whether or not these implications are followed by investors. Finally, we will see how Modern Portfolio Theory can be built upon to derive the most popular asset pricing model: the Capital Asset Pricing Model.

Asset Allocation

This third week is dedicated to asset allocation. After a short introduction to investor profiling, we will delve into Strategic Asset Allocation (SAA). You will see how it relates to Modern Portfolio Theory and how it differs from Tactical Asset Allocation (TAA). We will look at how both asset allocations can be implemented separately but also in conjunction in order to build portfolios that fulfill investors’ needs and constraints while taking advantage of market opportunities.

Risk Management

This fourth and final week is dedicated to risk. We will start by looking in more depth at different sources of risk such as illiquidity and currency risk but also at the different tools available to investors to perform risk management. But how should we measure risk? We will see that it may be valuable to go a step beyond standard deviation, the risk measure we used so far, and look at the Value-at-Risk and Expected Shortfall which focus on potential large losses. Finally, we will use the financial instruments at our disposal to hedge market and currency risk.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Introduces foundational concepts in portfolio construction, risk assessment, and management

Led by renowned finance experts from the University of Geneva

Provides practical insights through guest lectures from industry professionals at UBS

Covers modern portfolio theory, asset allocation, and risk management techniques

Provides a strong foundation for individuals seeking to enhance their financial literacy and investment knowledge

Requires familiarity with basic financial concepts and principles

Reviews summary

Risk management for investment portfolios

Learners say this course delves into the fundamental principles of portfolio and risk management. It covers topics such as asset allocation, modern portfolio theory, risk assessment, and derivatives. Professors and guest speakers from the University of Geneva and UBS provide engaging lectures and real-life examples. The course is well-structured, but some learners note that week 4 is particularly challenging due to its complex mathematical concepts.

Professors are knowledgeable and engaging.

"Excellent course providing good,high level and fundamental understanding on regression line, scatter plot,distribution of returns in numbers and graphical representation, strategic and tactical allocations, currency risk."

"Learned lots of new stuff and thank you for the course content."

"The team at University of Geneva is awesome - very personable in their communication style and very crisp in their conceptual delivery."

"I am first time writing a review for any product or service. I am just writing this review to Professor Michel Girardin. Professor is great person with eminence amount of theoretical and practical knowledge."

Guest speakers from UBS provide real-world insights.

"The best part about the course is the guest lectures."

"The UBS Professors and Guests enriched us with their content and their experiences, all very safe and convinced, great scholars and excellent professionals."

"Many questions require multiple answers."

"UBS guest speakers .. Thank you all for this valuable knowledge and experience both .."

Some concepts are complex and require a strong math background.

"This course has disappointed me."

"The level of presenting is rather disappointing and shallow, given the connection and sponsporship of the UBS"

"The math in this course was unexpected, with very little explanations for us that arent experienced in it."

"I would support one of the reviewers by saying that week 4 should be split somehow into more appropriate portions, material should be explained more coherently without implying we can read it all up on the Internet."

Week 4 is difficult and rushed.

"It is not. I agree that it has much more than one can take keeping the pace that we're used to."

"Last week was rushed, the quality dropped."

"Week 4 requires more practical assignments"

"Week 4th is complicated with a lack of examples and many maths formulas only instead."

Too theoretical, not enough practical application.

"Watching some YouTube videos and reading practical articles on Investopedia will give anyone more understanding of portfolio allocation and risk management from a practical point of view than the pure theory presented here."

"I do not know if anybody reviewed the presented formulas or their explanation in week 4 from a leaner’s point of view: they suddenly exceed the whole gradual level of the specialization and do not present any practical value to a normal investor."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Portfolio and Risk Management with these activities:

Review 'Modern Portfolio Theory and Investment Analysis' by Frank J. Fabozzi

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Introduce core concepts of modern portfolio theory and investment analysis, providing a strong foundation for understanding the course material.

View Robust Portfolio Optimization and Management on Amazon

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Read Chapters 1-3 to gain an overview of modern portfolio theory and its key concepts.
Work through the practice problems at the end of each chapter to reinforce your understanding.
Summarize the main points of each chapter in your own words.

Participate in a study group with other students

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Foster collaboration, exchange of ideas, and enhance understanding through peer interaction.

Browse courses on Portfolio Management

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Form a study group with other students in the course.
Meet regularly to discuss the course material, share insights, and work on assignments together.
Support each other in understanding the concepts and applying them to practical scenarios.

Create a mock portfolio

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Provide practical experience in applying the principles of portfolio construction and risk management.

Browse courses on Portfolio Construction

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Define your investment goals and risk tolerance.
Research and select a range of assets that align with your goals and risk tolerance.
Construct a diversified portfolio by allocating your investments across the selected assets.
Monitor your portfolio's performance and make adjustments as needed.

Five other activities

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Solve practice questions on portfolio optimization techniques

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Reinforce understanding of optimization techniques and their application in portfolio management.

Browse courses on Portfolio Optimization

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Review the course material on portfolio optimization techniques.
Attempt practice questions that require you to apply these techniques to real-world scenarios.
Check your answers and identify areas where you need additional practice.

Follow online tutorials on advanced portfolio management strategies

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Supplement course material with additional insights and practical guidance on advanced portfolio management techniques.

Browse courses on Portfolio Management

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Identify online tutorials that cover advanced portfolio management strategies.
Follow the tutorials carefully and take notes on the key concepts and techniques.
Apply what you have learned from the tutorials to your own portfolio management strategies.

Attend a workshop on portfolio management best practices

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Gain practical insights and interact with experts in the field to enhance your understanding of portfolio management best practices.

Browse courses on Portfolio Management

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Research and identify workshops on portfolio management best practices.
Attend the workshop and actively participate in the discussions.
Take notes and apply the learnings to your own portfolio management strategies.

Develop a presentation on a specific topic related to portfolio management

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Enhance comprehension and communication skills by requiring students to research, synthesize, and present on a chosen topic.

Browse courses on Modern Portfolio Theory

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Choose a specific topic related to portfolio management.
Research the topic thoroughly using credible sources.
Develop a presentation outline and gather supporting materials.
Practice delivering the presentation to refine your communication skills.

Write a report on the impact of a specific economic event on portfolio performance

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Develop critical thinking and analytical skills by examining the impact of real-world events on portfolio performance.

Browse courses on Investment Analysis

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Select a specific economic event that has occurred within the past year.
Gather data on the performance of a range of portfolios during the period surrounding the event.
Analyze the data to identify the impact of the event on portfolio performance.
Write a report summarizing your findings and discussing the implications for portfolio management.

Career center

Learners who complete Portfolio and Risk Management will develop knowledge and skills that may be useful to these careers:

Portfolio Manager

A Portfolio Manager is an expert in managing financial assets for individuals, institutions, and organizations. This course will provide you with the knowledge and skills needed to be successful in this challenging and rewarding career. The course covers topics such as modern portfolio theory, asset allocation, risk management, and hedging. You will also learn how to use financial instruments and techniques in order to build and manage portfolios efficiently.

See salaries and explore the career path for Portfolio Manager

Financial Analyst

Financial Analysts are responsible for analyzing financial data and providing recommendations to investors. This course will provide you with the foundational knowledge of portfolio management, which is essential for success in this role. You will learn how to assess risk and return, allocate assets, and manage portfolios.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers provide financial advice and services to corporations and governments. This course will help you build a strong foundation in portfolio management, which is a key skill in this field. You will learn the principles of portfolio construction, risk management, and asset allocation. This knowledge will be invaluable as you advise clients on investment decisions.

See salaries and explore the career path for Investment Banker

Risk Manager

Risk Managers are responsible for identifying, assessing, and mitigating financial risk. This course will provide you with a comprehensive understanding of risk management, which is essential for success in this role. You will learn how to measure risk, develop risk management strategies, and implement risk controls.

See salaries and explore the career path for Risk Manager

Quantitative Analyst

Quantitative Analysts develop and use mathematical and statistical models to solve financial problems. This course may be useful for you in this role, as you will learn the principles of portfolio optimization and risk management. This knowledge can be applied to a variety of tasks, such as developing trading strategies, managing risk, and pricing financial instruments.

See salaries and explore the career path for Quantitative Analyst

Hedge Fund Manager

Hedge Fund Managers manage investment portfolios for wealthy individuals and institutions. This course will provide you with the knowledge and skills needed to be successful in this competitive field. You will learn about portfolio management, risk management, and financial analysis.

See salaries and explore the career path for Hedge Fund Manager

Insurance Underwriter

Insurance Underwriters assess and manage risk for insurance companies. This course may be useful for you in this role, as you will learn the principles of risk management and insurance. You will also gain an understanding of portfolio management, which can be applied to the underwriting process.

See salaries and explore the career path for Insurance Underwriter

Actuary

Actuaries use mathematical and statistical techniques to assess risk and uncertainty. This course may help you in this role as you will build a foundation in probability and statistics. You will also learn about risk management and insurance principles, which are essential for success in this field.

See salaries and explore the career path for Actuary

Investment Advisor

Investment Advisors provide financial advice and services to individuals and families. This course may be useful for you in this role, as you will learn the principles of portfolio management and risk management. You will also gain an understanding of financial planning, which is essential for providing sound advice to clients.

See salaries and explore the career path for Investment Advisor

Financial Planner

Financial Planners help individuals and families manage their finances. This course may be useful for you in this role, as you will learn about portfolio management, risk management, and financial planning. You will also gain an understanding of estate planning and tax planning, which are important for providing comprehensive financial advice.

See salaries and explore the career path for Financial Planner

Trust Officer

Trust Officers manage trusts and estates for individuals and families. This course may be useful for you in this role, as you will learn about portfolio management, risk management, and estate planning. You will also gain an understanding of trust law and taxation, which are essential for managing trusts and estates effectively.

See salaries and explore the career path for Trust Officer

Private Banker

Private Bankers provide financial advice and services to high-net-worth individuals and families. This course may be useful for you in this role, as you will learn the principles of portfolio management and risk management. You will also gain an understanding of private banking services, such as wealth management, estate planning, and trust management.

See salaries and explore the career path for Private Banker

Asset Manager

Asset Managers manage investment portfolios for individuals, institutions, and organizations. This course will provide you with the knowledge and skills needed to be successful in this challenging and rewarding career. The course covers topics such as portfolio management, risk management, asset allocation, and financial analysis.

See salaries and explore the career path for Asset Manager

Economist

Economists study the production, distribution, and consumption of goods and services. This course may help you in this role as you will build a strong foundation in statistics and econometrics. You will also learn about portfolio management and risk management, which can be applied to economic analysis.

See salaries and explore the career path for Economist

Statistician

Statisticians collect, analyze, interpret, and present data. This course may provide some useful background in probability and statistics, which are essential to this role. Additionally, you will gain an understanding of risk management, which can be applied to statistical analysis and modeling.

See salaries and explore the career path for Statistician