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# Excel for Investment Professionals

## Overview

Leverage Excel to make sound investments. Learn how to perform key investment-related activities in Excel, including investment evaluation and analysis on a stock or portfolio.

Do you manage a portfolio of stocks or securities? Microsoft Excel offers professionals in the investment industry with a bevy of tools that they can use to make sound investments. In this course, learn how to leverage these tools and perform key investment-related activities in Excel, including investment evaluation and analysis on a stock or portfolio. Professor Michael McDonald provides an overview of the major tasks in the investment industry, and then digs into how to do single stock investment analysis. He also goes over how to compute expected returns on a stock and a portfolio, value a bond in Excel, compute performance evaluation metrics, and more.

## Syllabus

Introduction
• Using Excel to make sound investments
• What you should know
1. Major Tasks in the Investments Industry
• Reviewing basic principles
• Reviewing asset allocation
• Reviewing beta
• Reviewing multiples and stock valuation
• Reviewing smart beta
2. Single Stock Investment Analysis
• Setting up time series data on a stock
• Computing holding period returns
• Computing time series momentum: Market timing
• Compute rolling P/E and P/B multiples for a stock
• Building a discounted cash flow model
• Building a dividend discount model
3. Investment Evaluation in Excel
• Computing expected returns on a stock
• Using probability to calculate stock returns
• Computing arithmetic and geometric returns in a portfolio
• Computing standard deviation and variance of an asset
• Finding covariances and correlations
• Computing standard deviation and variance of a portfolio
• Computing beta of an asset
• Computing risk for a portfolio with many stocks
4. Investment Evaluation in Excel
• Computing asset allocation
• Computing cross-sectional momentum
• Computing correlations between stocks
• Evaluating hedge funds and mutual funds with portfolio attribution
• Valuing a bond in Excel
• Performing scenario analysis
5. Portfolio Performance Evaluation
• Setting up allocations
• Scenario analysis in a portfolio
• Computing expected risk on a portfolio
• Computing portfolio Sharpe ratios
• Computing information ratios
• Computing Sortino ratios
• Calculating Treynor measures
• Calculating VaR
Conclusion
• Next steps

Michael McDonald

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