This course covers the theory and empirical evidence relevant for investing, particularly in the context of portfolio management. The course is geared towards the understanding and implementation of "modern portfolio theory," which is a general approach for maximizing the expected return of a portfolio for a given level of risk. Major topics covered include diversification, asset allocation, portfolio optimization, asset pricing models, market efficiency, bond valuation, term structure of interest rates, managing bond portfolios, and portfolio performance evaluation. Derivative securities such as options and futures may be introduced.
This course covers the theory and empirical evidence relevant for investing, particularly in the context of portfolio management. The course is geared towards the understanding and implementation of "modern portfolio theory," which is a general approach for maximizing the expected return of a portfolio for a given level of risk. Major topics covered include diversification, asset allocation, portfolio optimization, asset pricing models, market efficiency, bond valuation, term structure of interest rates, managing bond portfolios, and portfolio performance evaluation. Derivative securities such as options and futures may be introduced.
