Free module · Foundations
Markets, Returns & Capital
Understand what you own, how it earns a return, and where leverage enters the balance sheet.
instruments · compounding · valuation
The building blocks
First distinguish the asset you trade from the money used to finance it. Price changes affect the position; leverage determines how large that position is relative to your capital.
- Read a price and a position
- Calculate returns and financing
- Connect instruments to cash flows
Lessons in this module
- Measure the return before modelling it
- Cash securities, derivatives, and financing
- Discounted cash flow and the price of capital
- Translate an investment idea into a mandate
Practice and apply
- From a quoted price to investor wealth — Start with $10,000. Year 1 earns 12%; year 2 loses 8%. No external flows or fees.
Work through the practice exercises · Quant development tools