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Meeting Investors' Goals

University of Geneva- Olivier Scaillet, University of Geneva- Jonas Demaurex, University of Geneva- Philip Valta, University of Geneva- Tony Berrada, University of Geneva- Michel Girardin, University of Geneva- Kerstin Preuschoff, and University of Geneva- Rajna Gibson Brandon

In this course, you will dive into the concepts of rationality and irrationality and understand how they impact our investment decisions and what the consequences can be at the market level.

You will first explore the different biases that we, as humans, are subjected to when facing investment decisions and how they may impact the outcomes of these decisions. Moreover, you will see how emotions and ethical concerns such as honesty and trust influence market participants. When they are considered as a group rather than individually, you will discover how rationality and irrationality can drive asset prices to and away from their fair value. Finally, you will be presented with different portfolio construction methodologies and investment styles that make up the landscape of today's portfolio management industry.

At key points throughout the course, you will benefit from the practical knowledge of experts from our corporate partner, UBS, in how to build and manage clients' portfolios.

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What's inside

Syllabus

General Introduction and Key Concepts

In this introductory week, we will start by illustrating how emotions can hinder sensible investment decisions. You will then have the opportunity to check if you master the concepts of the first course that are important for this second course. Finally, we will lay the ground for next week’s content by looking at rational decision making.

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Focuses on personal finance and individual investor decision-making

Taught by experts in finance and behavioral economics

Explores the impact of emotions and ethical concerns on investment decisions

Provides practical knowledge on portfolio construction and investment styles

Designed for individual investors looking to improve their decision-making and investment strategies

Requires a foundational understanding of basic financial concepts and investment principles

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Reviews summary

Behavioral finance and portfolio management insights

According to learners, this course offers a solid introduction to behavioral finance, explaining how biases and emotions impact investment decisions and market behavior. Many found the insights on market efficiency, bubbles, and crises particularly valuable. The modules on portfolio construction and investment styles were also appreciated for providing practical frameworks. Students highlight the guest lectures, especially those from UBS experts and Prof. Jean-Pierre Danthine, as significant positives, offering real-world perspectives. While the course provides a strong theoretical foundation, some learners found the quizzes challenging and felt certain topics could benefit from more in-depth coverage or practical application examples. A few reviews mentioned the benefit of having completed the prerequisite course.

Benefit from completing course 1 first.

"It's highly recommended to take the first course in the specialization before this one, as it builds upon those concepts."

"Having completed the preceding course made understanding this material much easier."

"Some parts were difficult because I hadn't taken the first course, which seems necessary."

Introduces portfolio construction methods.

"The overview of top-down vs. bottom-up portfolio construction is very useful."

"I appreciated learning about the different investment styles used in the industry."

"The practical application of portfolio management concepts was a great addition."

Covers market efficiency, bubbles, and crises.

"The week discussing market efficiency, bubbles, and crises was fascinating and well-explained."

"Prof. Danthine's insights on financial crises were a standout part of the course."

"I now have a much better grasp of how group behavior can impact asset prices."

Explores how psychology affects investing.

"The segment on behavioral biases was incredibly insightful and explained complex ideas simply."

"Understanding investor psychology has changed how I look at market movements."

"I learned a lot about cognitive biases and how they influence my own investment choices."

Features valuable contributions from experts.

"The input from UBS professionals added significant real-world value to the course content."

"Guest speakers provided great practical context to the theories discussed."

"Hearing from industry experts like Prof. Danthine made the concepts more tangible and engaging."

Assessments can be difficult for some learners.

"Some of the quiz questions felt ambiguous or much harder than the lecture material prepared me for."

"I found the quizzes required a deeper understanding than the lectures alone provided."

"The quizzes were quite difficult; sometimes the wording was confusing."

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 Meeting Investors' Goals with these activities:

Refresh Knowledge on Financial Markets

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Review foundational concepts of financial markets to strengthen your understanding of how irrationality impacts investment decisions.

Browse courses on Financial Markets

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Review basic concepts such as stocks, bonds, and mutual funds.
Recall key principles of risk and return.

Review: Thinking, Fast and Slow

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Explore Daniel Kahneman's insights on the two systems of thinking to deepen your understanding of cognitive biases and decision-making.

View Noise: A Flaw in Human Judgment on Amazon

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Read and comprehend the key chapters related to cognitive biases.
Summarize and reflect on how these insights apply to your personal and investment decision-making.

Practice Rational Decision Making Drills

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Complete practice drills to reinforce the principles of rational decision-making introduced in the first week.

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Identify and explain the different types of cognitive biases.
Apply techniques to mitigate cognitive biases in your decision-making process.

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Create a Mind Map on Market Efficiency

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Create a mind map that visually represents your understanding of market efficiency and its limitations.

Browse courses on Market Efficiency

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Brainstorm and list the key concepts related to market efficiency.
Organize and connect these concepts using a mind mapping tool.
Summarize the implications of market efficiency for investment strategies.

Peer Discussion on Investment Styles

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Participate in a peer discussion to compare and contrast different investment styles, evaluating their pros and cons.

Browse courses on Investment Styles

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Research and identify different investment styles.
Prepare talking points on the advantages and disadvantages of each style.
Engage in respectful and constructive discussion with peers.

Review: Behavioral Finance

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Review the concepts of behavioral finance to solidify your understanding of biases in financial decision-making covered in the course.

View Beyond Greed and Fear: Understanding Behavioral... on Amazon

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Read the first few chapters of the book.
Summarize the key concepts in each chapter.
Reflect on how these concepts apply to your own investment decisions.

Guided Tutorials on Portfolio Optimization

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Follow guided tutorials to enhance your understanding and skills in constructing and optimizing investment portfolios.

Browse courses on Portfolio Optimization

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Identify and understand different portfolio optimization techniques.
Practice applying these techniques using portfolio optimization software or tools.
Analyze the results and evaluate the effectiveness of different approaches.

Create a Simulation Game for Market Efficiency

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Design and develop a simulation game that demonstrates the impact of irrationality on market efficiency and investment outcomes.

Browse courses on Market Efficiency

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Establish the rules and parameters of the game, considering different levels of market efficiency and irrational investor behavior.
Create a visual or digital representation of the game.
Facilitate the game and observe the decision-making patterns of participants.
Analyze the results and derive insights into the influence of irrationality on market outcomes.

Career center

Learners who complete Meeting Investors' Goals will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts study the performance of companies and make recommendations on whether to buy or sell their stocks. This course may be useful to a Financial Analyst because it describes the potential biases that impact investment decisions. By understanding these biases, Financial Analysts can improve their accuracy and make better recommendations.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers help companies raise money by selling their stocks and bonds to investors. This course may be useful to an Investment Banker because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Investment Bankers better understand the needs of their clients and develop more effective fundraising strategies.

See salaries and explore the career path for Investment Banker

Portfolio Manager

Portfolio Managers manage the investments of individuals and institutions. This course may be useful to a Portfolio Manager because it provides an overview of different portfolio construction methodologies and investment styles. This knowledge can help Portfolio Managers make better investment decisions and achieve their clients' financial goals.

See salaries and explore the career path for Portfolio Manager

Financial Advisor

Financial Advisors provide financial advice to individuals and families. This course may be useful to a Financial Advisor because it provides an overview of the biases that impact investment decisions and how these decisions impact asset prices. This knowledge can help Financial Advisors better understand the needs of their clients and provide them with more informed advice.

See salaries and explore the career path for Financial Advisor

Investment Manager

Investment Managers research and select investments for their clients. This course may be useful to an Investment Manager because it provides an overview of different portfolio construction methodologies and investment styles. This knowledge can help Investment Managers make better investment decisions and achieve their clients' financial goals.

See salaries and explore the career path for Investment Manager

Hedge Fund Manager

Hedge Fund Managers manage investment funds that use advanced investment strategies to generate high returns. This course may be useful to a Hedge Fund Manager because it provides an overview of different portfolio construction methodologies and investment styles. This knowledge can help Hedge Fund Managers make better investment decisions and achieve their clients' financial goals.

See salaries and explore the career path for Hedge Fund Manager

Private Equity Investor

Private Equity Investors invest in private companies that are not publicly traded. This course may be useful to a Private Equity Investor because it provides an overview of different portfolio construction methodologies and investment styles. This knowledge can help Private Equity Investors make better investment decisions and achieve their clients' financial goals.

See salaries and explore the career path for Private Equity Investor

Venture Capitalist

Venture Capitalists invest in early-stage companies that have the potential to grow into large, successful businesses. This course may be useful to a Venture Capitalist because it provides an overview of different portfolio construction methodologies and investment styles. This knowledge can help Venture Capitalists make better investment decisions and achieve their clients' financial goals.

See salaries and explore the career path for Venture Capitalist

Actuary

Actuaries use mathematical and statistical techniques to assess risk and uncertainty. This course may be useful to an Actuary because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Actuaries better understand the risks involved in different investments and make more informed recommendations.

See salaries and explore the career path for Actuary

Insurance Underwriter

Insurance Underwriters assess the risk of insuring individuals and businesses. This course may be useful to an Insurance Underwriter because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Insurance Underwriters better understand the risks involved in different insurance policies and make more informed decisions about whether or not to issue coverage.

See salaries and explore the career path for Insurance Underwriter

Credit Analyst

Credit Analysts assess the creditworthiness of individuals and businesses. This course may be useful to a Credit Analyst because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Credit Analysts better understand the risks involved in different types of credit and make more informed decisions about whether or not to extend credit.

See salaries and explore the career path for Credit Analyst

Economic Analyst

Economic Analysts study economic data and trends to make forecasts about the future. This course may be useful to an Economic Analyst because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Economic Analysts better understand the economic factors that influence investment decisions and make more accurate forecasts.

See salaries and explore the career path for Economic Analyst

Market Researcher

Market Researchers study consumer behavior and trends to help businesses develop new products and services. This course may be useful to a Market Researcher because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Market Researchers better understand the needs of investors and develop more effective marketing campaigns.

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Quantitative Analyst

Quantitative Analysts use mathematical and statistical techniques to analyze financial data. This course may be useful to a Quantitative Analyst because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Quantitative Analysts develop more accurate financial models and make better investment recommendations.

See salaries and explore the career path for Quantitative Analyst

Data Scientist

Data Scientists use data to solve business problems. This course may be useful to a Data Scientist because it provides an overview of how investors make decisions and how these decisions impact asset prices. This knowledge can help Data Scientists develop more effective data-driven solutions for businesses.

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Reading list

We've selected 14 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Meeting Investors' Goals.

Beyond Greed and Fear

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Provides a comprehensive overview of behavioral finance and its implications for the investment process. It covers a wide range of topics, including cognitive biases, emotions, and heuristics, and shows how these factors can lead to irrational investment decisions and market inefficiencies.

Meeting Investors' Goals

What's inside

Syllabus

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Save this course

Reviews summary

Behavioral finance and portfolio management insights

Activities

Career center

Reading list

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