Securing Investment Returns in the Long Run

Start Date: 07/05/2020

Course Type: Common Course

Course Link:

About Course

In this course, you will learn about the famous dichotomy between active and passive investing, how to appropriately measure and analyze investment performance and what the future trends in the investment management industry are. You will first learn about absolute and relative performance, risk-adjusted returns and how to decompose investment performance. The focus will then shift to the two main categories of investment vehicles, active and passive funds, and what they entail in terms of expected performance. Finally, you will explore the worlds of sustainable finance, neurofinance and fintech, three areas of research that will shape the future of the investment management industry. You will also benefit from the insights of experts from UBS, our corporate partner, on the practical implementation of the various concepts we will develop in this course.

Course Syllabus

Welcome to the course and this introductory module! After reviewing some mistakes you will no longer make after following this course and some useful things to know before the course, we will dive into one of the main topics of this course: the active versus passive investment management debate.

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Course Introduction

Securing Investment Returns in the Long Run In today’s fast-paced market, investors need to know how to manage capital today to reap the rewards in the future. In this course, we will learn how to invest in the long run by exploring trends affecting the relative valorization of capital, the risk-return tradeoff, and the market for long-term assets. We’ll look at key areas such as asset pricing models, portfolio optimization, risk preference and market saturation, and we’ll take a deeper dive into the research on risk-return tradeoffs and how to manage capital accordingly. We’ll learn by doing a series of series of deep-dive sessions where you’ll get hands-on experience in investing in the long run that you might otherwise get only after graduating from this course. Each week brings a series of questions and elements to focus on in order to provide you with a deeper understanding of a topic as we move into the nitty-gritty of investing. By the end of this course, you’ll be able to: - articulate your financial position in the current economic climate; - design a portfolio for long-term asset allocation; - identify and address risk; - evaluate investing objectives and approach; - assess the relative merits of different asset classes; - analyze market saturation; and - evaluate investment performance.What’s New? Market Surplus and Risk Invaluation Capital Structure and

Course Tag

Investment Management Sustainability Finance Socially Responsible Investing

Related Wiki Topic

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Long run and short run The long run is associated with the long-run average cost (LRAC) curve in microeconomic models along which a firm would minimize its average cost (cost per unit) for each respective long-run quantity of output. "Long-run marginal cost" ("LRMC") is the added cost of providing an additional unit of service or commodity from changing capacity level to reach the lowest cost associated with that extra output. LRMC equalling price is efficient as to resource allocation in the long run. The concept of "long-run cost" is also used in determining whether the long-run expected to induce the firm to remain in the industry or shut down production there. In long-run equilibrium of an industry in which perfect competition prevails, the LRMC = LRAC at the minimum LRAC and associated output. The shape of the long-run marginal and average costs curves is determined by returns to scale.
John C. Bogle difference between investment and speculation lies in the time horizon. Investment is concerned with capturing returns on the long-run with lower risk,
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Stocks for the Long Run Stocks for the Long Run is a book on investing by Jeremy Siegel. Its first edition was released in 1994. Its fifth edition was released on January 7, 2014. According to Pablo Galarza of "Money", "His 1994 book "Stocks for the Long Run" sealed the conventional wisdom that most of us should be in the stock market." James K. Glassman, financial columnist for The Washington Post called it one of the 10 best investment books of all time.
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Investment In finance, the benefit from investment is called a return. The return may consist of capital gain or investment income, including dividends, interest, rental income etc., or a combination of the two. The projected economic return is the appropriately discounted value of the future returns. The historic return comprises the actual capital gain (or loss) or income (or both) over a period of time.
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Long run and short run The transition from the short run to the long run may be done by considering some short-run equilibrium that is also a long-run equilibrium as to supply and demand, then comparing that state against a new short-run and long-run equilibrium state from a change that disturbs equilibrium, say in the sales-tax rate, tracing out the short-run adjustment first, then the long-run adjustment. Each is an example of comparative statics. Alfred Marshall (1890) pioneered in comparative-static period analysis. He distinguished between the temporary or market period (with output fixed), the short period, and the long period. "Classic" contemporary graphical and formal treatments include those of Jacob Viner (1931), John Hicks (1939), and Paul Samuelson (1947).
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