Module 4: Measuring Risk In Stocks

taught by Aman Raina, MBA
  • 21 Videos
  • 2 Texts
  • 1 Audio
  • 1.0 hr

Course Curriculum

Introduction and Administration Items
Administration Items
Module 4-Presentation Download
Module 4-Podcast
WinPak Financial Statements Download
Hide Content
Risk: The Gorilla In The Room
Slide 1
Hide Content
Cost of Capital
Slide 2
Hide Content
Cost of Capital: Ingredients and Variables
Slide 3
Hide Content
Components of Cost of Capital
Slide 4
Hide Content
Cost of Debt
Slide 5
Hide Content
Cost of Equity
Slide 6
Hide Content
Putting It All Together: Cost of Capital
Slide 7
Hide Content
Cost of Capital of WinPak
Slide 8
Hide Content
Cost of Capital of WinPak (continued)
Slide 9
Hide Content
Cost of Capital of WinPak (continued)
Slide 10
Hide Content
Cost of Capital of WinPak (continued)
Slide 11
Hide Content
Impact of Capital Structure on Risk
Slide 12
Hide Content
Variables Which Can Impact Cost of Capital
Slide 13
Hide Content
Back of Envelope Calculation
Slide 14
Hide Content
Managing Risk
Hide Content
Role of Risk In The Investment Decision
Slide 16
Hide Content
What Do We Know Now?
Slide 18
Hide Content
Slide 19
Hide Content
Final Thoughts
Final Thoughts
Hide Content
Tutorial: Cost of Capital Calculator Template
Cost of Capital Calculator
Cost of Capital Calculator Tutorial
Hide Content
Module Evaluation
Hide Content
Module 8: Cognitive Biases
Module 7: Investment Products
Module 6: Making the Investment Decision
Module 5: Measuring The Value of Stocks
Module 3: Understanding The External Investing Environment
Module 2: Reading and Interpreting Financial Statements
Module 1: Principles of Capitalism and Investing
Everyday Investing Bundle

Course description

One of the things that scares people about investing is the prospect of losing all their money if an investment decision to buy a stock leads to a company going out of business or becoming significantly impaired. It’s a justifiable feeling because it is true. When you buy a stock you do run the risk of possible losing some or all of your investment. It doesn’t matter if it’s a bank or a biotech stock. There is a level of likelihood and that varies by degrees that you can lose money.

In this module the we will drill down into the whole concept of risk which plays a critical factor in how we decide what stocks to buy and sell. We spend a great deal time focussing on key metrics such as profitability, sales growth, and cashflows. So much so that we overlook a fundamental pillar when we framing our decisions which is the likelihood that the investment doesn’t pan out.

The protege will learn to evaluate and determine how risky a stock is and they can use this information to determine whether the stock is worthy buying or avoiding or selling if they currently are owning a stock in our portfolio.

The module will provide the protege with some core tools that are readily available to help them understand the other side of the investing decision and more importantly to take some of the fear they might have with losing some or all of their hard earned savings.

Estimated Course Time: 1 hour 13 minutes (not including tutorial)

Math-i-ness Factor: (1=No Math, just concepts, 10=breakout the spreadsheets and calculators!)

8 - There's some math, but fear not, with our spreadsheet template we take some of the number crunching off your hands!

Read More


Aman Raina, MBA
Aman Raina, MBA
Investment Coach and Founder - Sage Investors

I help new and experienced investors who want to be financially secure but feel confused , intimidated and uninformed by the investing world. They either don’t know where to begin or feel that they are not making enough progress with their investments. I teach and engage with them in how to make educated investment decisions so that they can achieve financial freedom in their lives with confidence.

Over the years, I have met numerous investors who have shared their stories about how financial institutions have failed them in providing appropriate guidance for their investment portfolios. Many have gone on to lose significant portions of their savings, leading to financial and emotional hardships, while the institutions that should be helping them are enjoying massive profits. I believe there is a serious disconnect here and this is not healthy for our society.

My call to action

The people that I saw requiring the most assistance was hard working people like yourself, who after several stock market meltdowns have decided they want to take control of their financial destiny.

Sage Investors is Born

After investing for 20 years, I really believe deep down that investing is a lot easier than what the industry makes it out to be and any person can become really good at investing if they have the right education, motivation, and support. With that I created Sage Investors with a goal of creating an army of empowered and successful Sage Investors!

I've seen it first hand in the people I've worked with. When I started working with people, they knew nothing about investing, but with hard work and commitment to learning the mechanics and emotional aspects of investing, I see them now as confident investors who are building a meaningful nest egg for their future on their own.

I see them happy that their hard earned savings are growing meaningfully for them.

They have hope.

They have hope that that they have a good chance of having some financial flexibility to achieve their own personal and family goals.

I have gained so much admiration and greater satisfaction in helping these hard working people achieve some level of financial freedom in their lives. The best part is when I help someone on their investing journey, I am learning something new about investing that helps me. What a win-win!

I look forward to having an opportunity to work with you.

To your future investing success!

Aman has appeared on a variety of media outlets including financial print media as well as podcasts.

Sage Investors is based out of Toronto, Canada

Aman Raina, MBA

Investment Coach and Founder - Sage Investors

Twitter: @sageinvestors