Financial Markets and Investments


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

Caracterização geral





Professor responsável

Jorge Bravo (IMS)


Semanais - 3

Totais - A disponibilizar brevemente

Idioma de ensino



A disponibilizar brevemente



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.

Método de ensino

Expositional and Questioning Method, Case Study analysis; problem solving activities; active learning;

Método de avaliação

–     Individual final exam (50%; minimum score 8/20).

–     Individual/group projects (50%).


1.      Markets, financial instruments and institutions: Financial System; Segmentation of financial markets; Trading of Financial Instruments: Public Offerings, Trading Systems, Participants

2.      Portfolio Choice: Risk and return of an asset / portfolio; diversification; Markowitz Efficient Frontier; Decision-making under uncertainty; Selecting optimal portfolios

3.      Equilibrium models in financial markets: Market Index Model; CAPM; APT theory; Efficiency of financial markets

4.      Analysis and evaluation of financial investments

4.1.Bonds and other debt securities: modalities and characteristics; yield curve; pricing; measures of return / risk, rating; interest rate risk hedging and immunization strategies

4.2.Stocks: Typology, Fundamental and Technical Analysis; Discounted cash flow models; Market Multiples; Capital Increases and Evaluation of Rights

4.3.Investment Funds


4.5.Financial derivatives


Cursos onde a unidade curricular é leccionada: