COURSE DESCRIPTION:

 

The course focuses on the theory and practical applications of international investments in financial assets. Students will study the basic elements of investments: asset classes, financial markets and participants. The course then turns to the study of risk and return, efficient diversification, the CAPM and arbitrage pricing and efficient markets.

Students will study the conflicting theories of efficient markets and behavioral finance. The course continues with equity valuation including macro-economic analysis, industry analysis and the theory and application of the different methods of equity valuation. The course finishes with an introduction to options, futures and risk management.

 

COURSE OBJECTIVES:

 

The course is an introduction to the complex and growing field of international investments. Finance students and motivated non-finance students will be introduced to the theory and practice of investing in financial assets in world markets. The emphasis will be on risk and return and portfolio management as well as equity valuation. Though the course is designed to meet the needs of students who might want to pursue a career in the investment field, it will prove useful for personal investing as well.

 

EXPECTED LEARNING OUTCOMES:

 

Upon completion of this course, students should be able to:

• Understand asset classes and their related risk
• Work with different types of financial market participants
• Determine asset allocation between risky and riskless assets
• Calculate return and associated risk of investments
• Build portfolios of assets
• Debate the efficient market theory
• Perform macro-economic and industry analysis
• Determine intrinsic values of equities using comparable ratios, dividend discount models and free cash flow models.
• Develop risk management strategies with options and futures