This course is designed to give students a solid understanding of the investment environment and the modern theory of portfolio management and its applications. The major topics to be covered are: 1. The institutional environment of investment, the financial products available and how they are traded; 2. Techniques used in pricing these products: fixed income, equity, and derivative securities; 3. How to design of a portfolio of many assets and the trade-off between risk and return.
- Understand how financial markets function;
- Be able to apply asset pricing models to financial asset valuation;
- Be able to apply Modern Portfolio Theory to portfolio management.