|This course examines the behavior and determinants of asset prices, and provides the skills and tools needed in investment management. Topics covered include the following: the term structure of interest rates; portfolio selection based on mean-variance analysis; models of risk and return (including the CAPM and multifactor models); performance evaluation; market efficiency, asset pricing anomalies, and behavioral finance; and derivative security pricing (including options, futures, forwards, and swaps).|
|The main text used for the course is Bodie, Kane, and Marcus, Investments; and a Course Pack.|
|Based on a final, mid-term, and homework assignments. Class participation will help decide grades at the margin.|
|Business 30000, 33001, and 41000 or 41100. Students must be comfortable with statistics, linear and matrix algebra, calculus, and microeconomics at the level of the above courses. Familiarity with a spreadsheet package such as Excel is vital.
Description and/or course criteria last updated: 6/11
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