75386 - Investments

Learning outcomes

The purpose of the course is to evaluate investment decisions towards financial securities traded in the financial markets (bonds, stocks and derivatives). By the end of the course, students learn (a) how to evaluate the risk and the return associated with the securities traded in the financial markets, as well as (b) to effectively employ the modern portfolio theory in the selection of the securities.

Course contents

The course focuses on bonds, stocks, and derivatives. 

Content:

-Introduction on financial system

-Risk and Return of fixed income securities (bonds)

- Risk and Return of risky securities (stocks)

- Portfolio theory: theory and practice

- Asset pricing

- CAPM

- APT

- Portfolio Management

- Investment performance

Readings/Bibliography

Bodie Kane Marcus (BKM), Investments, Mc Graw Hill, 10^th Edition (or any other editions)

Additional Materials may be provided during the course to attending students.

Teaching methods

The course will employ various applications, class discussions, and laboratory exercises.

Assessment methods

For students attending the course

Final Exam (70%) and written group-project on risky securities or fixed income securities or derivatives, and risk management based on theory and data collected by the student (30%).

For students not attending the course

Full exam: multiple and open questions (100%)

Office hours

See the website of Giovanni Cardillo