Investments

Catalog description

Finance includes two important branches, corporate finance and investments. This course introduces students to financial assets, starting with some background about the investment environment, the financial instruments and the procedures available for trading securities. The next step is the study of portfolio theory which includes risk aversion, capital allocation, and optimal risky portfolio. The next topics covered are the Capital Assets Pricing Model (CAPM), the Arbitrage Pricing Theory (APT) and Efficient Market Hypothesis (EMH). We also introduce the newer models of asset pricing, based upon Fama French factors and structural models. We cover fixed income securities and some contingent claims, such as options and futures. Restriction(s): For MS Finance students only.