Investments

Objectives

This course is designed to provide students with a strong foundation in all the fundamental concepts in investments. Broad topics include risk and return, constructing optimal portfolios, asset pricing models, fixed-income securities, and financial derivatives. We will seek a balance between the theoretical paradigms, the empirical findings, and their application to the real world. Lectures and exams will concentrate on both conceptual foundations and quantitative problem solving.

General characterization

Code

2229

Credits

7

Responsible teacher

Nicholas H Hirschey

Hours

Weekly - Available soon

Total - Available soon

Teaching language

English

Prerequisites

n/a


Bibliography

"Investments", by Bodie, Kane, and Marcus, 10th edition, McGraw-Hill

Lecture notes.

Teaching method

The course will be following a blended format, which is composed of online videos and in person classes Online Videos : before each in person class, the students will be provided with online videos where the conceptual material is presented and illustrated with simple examples. Each set of videos will be accompanied with slides, exercises and recent articles on the topic. Students are required to go over the relevant material (videos, slides and exercises) before each in-person class In person classes : these classes will be highly interactive and based on the online material provided to the students. The class will be a mix of solution of exercises, discussion of the articles and clarification of basic concepts that are not clear. Students are expected to actively engage in the class. 


Evaluation method

Grades will be determined using the following factors and relative weights:

Class Participation: 10%
Assignments: 20%
Midterm term :35%
Final exam: 35%

Subject matter

Main topics covered in the course:

  • Introduction: present values, risk and return

  • Portfolio Theory

  • Equities

  • Fixed Income

  • Linear Derivatives and Options