Planning to invest your interest in Financial Market courses?
I am always on the lookout for new courses and was thrilled when Coursera published Financial Markets with Nobel Prize in Economics and Yale Professor Robert Schiller, Nobel Prize in Economics and Yale Professor Robert Schiller of Yale University. The online financial markets course is taught by Robert Schiller, a professor at Yale University.
I took a 7-week online financial markets course at Yale University on the Coursera platform. I recommend the online course “Financial Markets” to all those interested in understanding the natural functioning of the stock, insurance and banking sectors. Yale University, a student-centred research university that encourages learning as an integral way of life, is a place of connection, creativity, and innovation across cultures and disciplines. Portfolio diversification in financial institutions and discusses the opportunities and vulnerabilities of risk management institutions.
The first week of the course covers the fundamental principles of finance and risk management. The system is 33 hours long and is scheduled for over 7 weeks. Yale Commitment 6-12 hours per week Languages English, Chinese (Simplified) How to complete this course by turning in all graded assignments.
I previously stumbled upon a different version of this course through Open Yale, a site operated by Yale where anyone can access brutal live video and audio recordings of the lectures. Most of the videos are Yale Open lectures. As an online student and not hoping to really talk to my professors, I was thrilled to be able to take a course with a famous professor, albeit one of the thousands.
The National Association of Insurance Commissioners (NAIC) develops standardized proposed laws. It provides an overview of the ideas, methods, and institutions that enable human society to manage risk and advance business. The financial system must manage risk for all and improve the performance of civilization.
It offers a risk-free rate of return with minimal portfolio risk. This is the risk that the nominal rate of return on investment exceeds the rate of inflation. This is not the risk of inflation; this is the risk of significant fluctuations in inflation over time.
This is the risk that investment cash flows will not be worth much in the future due to changes in purchasing power due to inflation. If you want more profit, you need to take more risks and vice versa. This increases systemic risk in your portfolio, which is inherent uncertainty in the overall market and cannot be diversified.
An example of misplaced risk is moral hazard, which refers to the effect of insurance on undesirable human behaviour. Another example is selection bias: some people who took out an insurance policy knew they were at higher risk. Newcomb’s paradox. People sometimes change their behaviour when they become aware of a prediction that has been made about the future.
It does not look at historical performance but looks at all the details of portfolios and their vulnerability during all sorts of potential financial crises. Gradually, a general understanding emerges, and then I can enrich it by looking for specific details as soon as I know what I don’t know. You will understand how finance works in our society and will be able to use this knowledge both as a manager and as a consumer. The ultimate goal of this course is the effective use of these industries for the betterment of society.
These are also videos in which Professor Schiller reflects on why, despite the bad image that finance has acquired since the financial crisis of 2008, they still consider financial markets essential to modern society. The course also provides a case study from AIG, a major insurance company bailed out during the 2008 mortgage crisis by the US government in 2008.
AIG insured itself against the insolvency of companies whose credit depended on the real estate market. AIG also invested directly in real estate and mortgage-backed securities, and their success depended on the real estate market. Their idea was that it doesn’t matter if they take risks when house prices fall because they will never fall anywhere.
The idea behind the capital asset pricing model is that investors should be compensated in their investments based on the time and amount of risk they take. That’s why stock pricing models include the risk-free rate of risk-free security to pay for the time and a risk premium that considers the security’s beta times the security’s expected return minus the risk-free rate.
This does not increase the standard deviation of your portfolio, as borrowed money is risk-free and therefore has a zero standard deviation. Borrow money at the risk-free rate, invest in a portfolio with the lowest standard deviation, and only invest in risky securities by including all classes of marketable assets in your portfolio, regardless of their risks. It is difficult to predict the nature of future financial markets; this evolution will depend on the participation of the younger generation in the financial community.