There are thousands of different stocks publicly listed, each with their own risks and reward opportunities. But which ones should we invest in? On top of that, the question how much we should invest in each stock results in literally an infinite amount of different ways we can allocate our money. This leaves the question is there an optimal way to invest?

In this lecture we will surprisingly learn that this is the case. In fact! there is only one optimal way! We will learn about a Nobel prize winning framework through which to understand the investment process, and we will put it into practise and build an algorithm that outperforms the market. We will use this framework the following lectures to derive many more surprising results that will teach us deep lessons about investing.