At the end of the semester students should be able to:
– Understand the organization and operation of the financial system and its economic relevance
– Know the mechanisms for admission to the market, trading systems used and the main market participants
– Distinguish the main segments in which financial markets are decomposed and the major financial instruments traded in them
– Analyze and evaluate spot market and derivative market financial securities
– Identify and calculate the sources of risk and return of financial assets
– Discuss the problem of choosing asset portfolios, the relationship between return and risk, the importance of diversification
– Understand how equilibrium prices are established and the selection of optimal portfolios under uncertainty
– Discuss the problem of efficiency in financial markets
Jorge Bravo (IMS)
Bodie, Z., Kane, A. and Marcus, A. (2017). Investments, 11th Edition. McGraw-Hill.
Hull, J. (2016). Fundamentals of Futures and Options Markets (9th Edition). Prentice Hall
BVLP (2001), Investir em Bolsa: Funcionamento e Instrumentos do Mercados à Vista, IMC
Cuthbertson, K. e Nitzsche, D. (2007), Investments, Spot and Derivative Markets, Wiley.
Damodaran Aswath (2012), Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition.
Elton, E. e Gruber, M. (2014), Modern Portfolio Theory and Investment Analysis, 9th Edition, John Wiley & Sons, New York.
Mota, P. R., Alves, C., Fernandes, A. e Rocha, M. (2015). Mercados, Produtos e Valorimetria de Ativos Financeiros, 2ª Edição, Almedina.
Expositional and Questioning Method, Case Study analysis; problem solving activities; active learning;
– Individual final exam (50%; minimum score 8/20).
– Individual/group projects (50%).
The goal of mastering of understanding the organization and operation of the financial system and its economic relevance, knowing the mechanisms for admission to the market, trading systems used and the main market participants and differentiating the main segments in which the organization and functioning of financial markets and its participants and the distinction between the various financial instruments traded is addressed in section 1 of the syllabus. The analysis and valuation of spot market and derivative market financial securities in covered in section 4. The identification and computation of the sources of risk and return of financial assets and the discussion the problem of choosing asset portfolios, the relationship between return and risk, the importance of diversification are covered in section 2. The determination of equilibrium prices and the selection of optimal portfolios under uncertainty are covered in section 3.
Programs where the course is taught: