Course description



In this course you will be introduced to major issues currently of concern to all investors. It will give you the skills to conduct a sophisticated assessment of current issues debates covererd by both the popular (especially digital) media as well as more specialized finance journals. The course will familiarize students with the financial markets and will provide an introduction to the theory and practices of investments for both individual investors as well as for funds. The course will emphasize the international dimension of the investment process and will introduce sustainable short term and long term investment strategies.

Course content

The course will be organized as follows:

  • • Asset classes: markets, pricing and historical record
    • Equity markets and historical record
    • Fixed Income Securities: pricing, markets and historical record
    • Alternative investments: real estate, commodities, venture, etc
  • • Fixed Income
    • Bond pricing
    • The term structure of interest rate
    • Bond portfolio management
  • • Equity valuation
    • The price to earnings ratio
    • Macroeconomic and industry analysis
  • • The portfolio management process
    • Mean-Variance theory and the CAPM
    • Efficient markets and portfolio management
    • Active portfolio management strategies
    • Optimal portfolio rebalancing
  • • Measuring portfolio performance
  • • Hedge funds, mutual funds and exchange traded funds
  • • Investment policy and the framework of the CFA institute

Learning outcome knowledge

Provide students with the principles of investments in bonds and stocks, and a profound understanding of the risk - expected return tradepff and its implications for asset pricing. Emphasis will be given to understanding recent developments in the financial markets described in the digital financial press.

Exam organisation

  • Class participation: 5%
  • Written assignment: 20%
  • Written exam: 75%