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    ECON 363-Economics of Investment and Finance

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    Malik Amin
    This course provides an introduction to financial instruments and investment analysis. It will address both the theory and practice of making investment decisions using diverse securities as investment tools. Students will learn about modern investment tools like options and futures, as well as risk management and basic hedging techniques. The primary focus is the relationship between risk and return and how this determines optimal investment decisions according to portfolio theory and extensions. Real world applications will be discussed. The course involves quizzes, a midterm, and final exam. Readings are from the specified textbooks.

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    ECON 363-Economics of Investment and Finance

    Uploaded by

    Malik Amin
    77 views3 pages
    This course provides an introduction to financial instruments and investment analysis. It will address both the theory and practice of making investment decisions using diverse securities as investment tools. Students will learn about modern investment tools like options and futures, as well as risk management and basic hedging techniques. The primary focus is the relationship between risk and return and how this determines optimal investment decisions according to portfolio theory and extensions. Real world applications will be discussed. The course involves quizzes, a midterm, and final exam. Readings are from the specified textbooks.

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    This course provides an introduction to financial instruments and investment analysis. It will address both the theory and practice of making investment decisions using diverse securities as investment tools. Students will learn about modern investment tools like options and futures, as well as risk management and basic hedging techniques. The primary focus is the relationship between risk and return and how this determines optimal investment decisions according to portfolio theory and extensions. Real world applications will be discussed. The course involves quizzes, a midterm, and final exam. Readings are from the specified textbooks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views3 pages

    ECON 363-Economics of Investment and Finance

    Uploaded by

    Malik Amin
    This course provides an introduction to financial instruments and investment analysis. It will address both the theory and practice of making investment decisions using diverse securities as investment tools. Students will learn about modern investment tools like options and futures, as well as risk management and basic hedging techniques. The primary focus is the relationship between risk and return and how this determines optimal investment decisions according to portfolio theory and extensions. Real world applications will be discussed. The course involves quizzes, a midterm, and final exam. Readings are from the specified textbooks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Econ 363: The Economics of Investment and Finance - I Fall Semester 2011-12

    Instructor: Email: Course Description

    Tareena Musaddiq [email protected]

    This course is designed to introduce students to the concept of financial instruments, and the process and analysis of investment in financial markets. Both the theory and practice of investment decisions, and the diverse securities used as investment tools to implement those decisions, will be addressed in this course. An introduction to modern tools of investment such as options and futures will be made, though a complete treatment is beyond the goals of this course. Students will also be given an overview of risk management and the basic hedging techniques. The primary focus of this course is the relationship between risk and return, and how this relationship determines an optimal investment decision according to modern portfolio theory and its extensions. Real world applications will be discussed as often as possible. Pre requisites: Principles of Microeconomics , Principles of Macroeconomics and Statistics. Main text: Investments, Zvi Bodie, Alex Kane and Alan J. Marcus, 6th Edition, McGraw-Hill Irwin (2005) Other texts: Options, Futures, and Other Derivatives, 7th Edition, John C. Hull, Prentice Hall (2009) Grading Scheme: Quizzes: 25% Mid Term: 35% Final: 40%

    Session

    Topics Interest rate and discounting, determination of interest rates, HPR Time Value of money, Concept of PV, Investment Environment, Financial Markets and Instruments Discounted Cash Flow , Pay back and IRR( limitations of IRR) The Single Period Investment Consumption Model: Fisher Separation Theorem Risk and return , risk aversion, and portfolio theory

    Reading

    BKM Ch 5

    2 3

    BKM Ch 1,2 Class notes

    Class notes

    BKM Ch 6

    6&7 Quiz 1 Capital allocation between the in risky and risk free asset session Portfolio mean and variance 6 8&9 Portfolio Optimization 10 & 11 Quiz 2 Capital Asset Pricing Model and in Empirical testing session 10 12 & 13 Index Models

    BKM Ch 7

    BKM Ch 8

    Readings handed out

    BKM Ch 10

    14 Quiz 3 Arbitrage Pricing Theory and in multifactor models of risk and session return 14 15 16 Mid-Term Bond Prices and yields

    BKM Ch 11

    BKM Ch 14 BKM Ch 15 Ch 16 BKM 18

    17 & 18 The term structure of interest rates 19 & 20 21 Managing Bond portfolios Equity valuation

    22 & 23 Quiz 4 in Options markets : introduction session 22 24 & 25 Option valuation 26 & 27 Futures and swaps 28 Review and Quiz 5

    BKM Ch 20

    BKM Ch 21 BKM Ch 22 and 23

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