Investments

Code

2229

Academic unit

null

Department

null

Credits

7

Teacher in charge

Fernando Anjos e Pedro Santa Clara

Teaching language

English

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.

Prerequisites

N/A

Subject matter

Main topics covered in the course:

Introduction: present values, risk and return

Portfolio Theory

Equities

Fixed Income

Linear Derivatives

Options

Bibliography

Lecture notes.

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

Teaching method

There are four main teaching and learning methods:

Lecture-style classes: conceptual material is presented and illustrated with simple examples.

Cases: the class prepares and discusses a case on the topic of investments.

Problem sets: students will be given simple problem sets, mostly aimed at consolidating technical material (for example, valuing derivatives).

Topical issues: a recent event and/or news piece is selected for class discussion (for example: the recent contraction of the hedge-fund industry and its potential implication for market efficiency).

Evaluation method

The final grade will be a weighted average of the grades in the assignments:

Problem sets 20%

Cases 20%

Midterm 20%

Exam 40%

Class participation rounding the final grade

Courses

• Masters in Economics
• International Masters in Finance
• Masters in Finance