On successful completion of the course, students should be able to:
• Understand the fundamental principles of investment in financial markets
• Understand how investors make investment decisions
• Understand what determines asset valuations and returns
• Acquire the required skills to estimate the value of a stock and the value of a company
• Understand the role of portfolio investment companies
• Gain a quantitative understanding of portfolio choice decisions and of the rational for the use of derivatives
• Acquire a basic understanding of risk and return analysis
Course Content (Syllabus)
Portfolio theory. Capital asset pricing models. Financial markets and instruments. Stock and company valuation. Portfolio investments companies - Mutual Funds. Portfolio performance evaluation.
Risk, return, CAPM, portfolio performance, Sharpe index, Treynor index, Jensen alpha.