|This course offers the financial theory and quantitative tools necessary for understanding the pricing of stocks, bonds, and options. The emphasis is on developing an analytical framework with an applied focus. Topics covered include the following: portfolio selection based on mean-variance analysis; models of risk and return (including the CAPM and multifactor models); performance evaluation; market efficiency and the random walk hypothesis; asset pricing anomalies and behavioral finance; derivative security pricing (including options, futures, forwards, and swaps); the term structure of interest rates; macroeconomic news and asset markets.|
|Required: Bodie, Kane, and Marcus, Investments, and a CoursePack.|
|Based on 5-6 homework assignments, two mid-terms, and a final.|
|Business 30000, 33001, and 41000 or 41100. This is a highly quantitative course. It presupposes a good working knowledge of basic statistics, regression, elementary calculus, and the ability to use a spreadsheet package like Excel.
Description and/or course criteria last updated: 06/11
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