The University of Melbourne
Alternative Approaches to Valuation and Investment
The University of Melbourne

Alternative Approaches to Valuation and Investment

Paul Kofman
Sean Pinder

Instructors: Paul Kofman

16,901 already enrolled

Included with Coursera Plus

Gain insight into a topic and learn the fundamentals.
4.7

(297 reviews)

16 hours to complete
3 weeks at 5 hours a week
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
4.7

(297 reviews)

16 hours to complete
3 weeks at 5 hours a week
Flexible schedule
Learn at your own pace

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

9 quizzes

Taught in English

See how employees at top companies are mastering in-demand skills

Placeholder

Build your subject-matter expertise

This course is part of the Essentials of Corporate Finance Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
  • Earn a shareable career certificate
Placeholder
Placeholder

Earn a career certificate

Add this credential to your LinkedIn profile, resume, or CV

Share it on social media and in your performance review

Placeholder

There are 4 modules in this course

This week we will define a statistical measure of stand-alone risk as being the standard deviation of returns. We will describe three alternative attitudes towards risk, settling on risk aversion as being the standard assumption made in financial markets. We will then analyse the impact of combining assets into a portfolio upon both risk and return and then quantify the benefits from diversification by comparing performance against a suitable benchmark.

What's included

6 videos7 readings2 quizzes

This week we differentiate between systematic and unsystematic risk and explain how the expected returns that are reflected in the prices of assets should be linked to only one type of risk. We illustrate how the Capital Asset Pricing Model might be used to link systematic risk with expected return and then discuss the empirical shortcomings of the model. This leads to a description of more advanced models and we conclude with a review of survey evidence that considers the approach taken by finance mangers of large listed firms in practice.

What's included

7 videos1 reading2 quizzes

This week we will explain the logical underpinnings of the Weighted Average Cost of Capital Formula and show how it might be estimated in practice by a firm. We will also consider the many challenges that might be faced in using this approach to estimating hurdle rates and conclude with a warning about the perverse outcomes that might occur if the technique is used in a haphazard manner.

What's included

5 videos1 reading2 quizzes

This week we describe how standard NPV analysis might lead to incorrect decisions when we fail to account for the impact of (or upon) firm flexibility. We then describe the three most common types of real options that firms face in practice and then explain how decision trees might be used to arrive at an approximation of the value of the real option that is embedded within a project. We conclude by considering empirical evidence on the take-up of real options analysis and discuss the situations in which real options analysis might most be needed.

What's included

5 videos4 readings3 quizzes1 peer review

Instructors

Instructor ratings
4.8 (11 ratings)
Paul Kofman
The University of Melbourne
5 Courses91,133 learners

Offered by

Recommended if you're interested in Finance

Why people choose Coursera for their career

Felipe M.
Learner since 2018
"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."
Jennifer J.
Learner since 2020
"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."
Larry W.
Learner since 2021
"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."
Chaitanya A.
"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Learner reviews

Showing 3 of 297

4.7

297 reviews

  • 5 stars

    76.84%

  • 4 stars

    18.45%

  • 3 stars

    3.35%

  • 2 stars

    0.33%

  • 1 star

    1%

HV
5

Reviewed on Jan 4, 2016

JA
5

Reviewed on Mar 19, 2016

GG
5

Reviewed on Feb 5, 2016

New to Finance? Start here.

Placeholder

Open new doors with Coursera Plus

Unlimited access to 7,000+ world-class courses, hands-on projects, and job-ready certificate programs - all included in your subscription

Advance your career with an online degree

Earn a degree from world-class universities - 100% online

Join over 3,400 global companies that choose Coursera for Business

Upskill your employees to excel in the digital economy

Frequently asked questions