Investments FI408

Course Objectives

Introduction to the elements of investments and how securities are traded;
Investors and the investments process;
Portfolio theory and fixed income securities;
Derivatives: options and futures;
Investments management

Course Content

Part one – elements:
Background and issues;
Global financial instruments;
Trading securities and mutual funds/investment cos.

Part two – Portfolio theory
Risk and return;
Efficient diversification;
Capital asset pricing model and arbitrage pricing theory;
Efficient market hypothesis

Part three – Fixed-income securities:
Bond prices and yields;
Managing fixed income investments

Part four – Security analysis:
Macroeconomic and industrial analysis;
Equity valuation;
Financial statement analysis

Part five – Derivatives:
Options and futures

Part six – Active investment management:
Investors and the investments process;
Taxes, inflation and investment strategy;
Behavioral finance and technical analysis;
Performance evaluation and portfolio management;
International investing

Recommended Text:

Bodie/Kane/Marcus, Essentials of Investments Fifth edition;
McGraw Hill international edition