In this course students will be introduced to the modern study and analysis of Investments by considering how the investors, namely private and institutional, make their decisions and how their choices can be evaluated. In particular, the Course aims at developing participant’s skills on how the International financial markets work. In recent years both markets and securities have evolved to meet the changing and complex needs of different participants in the financial system. In this regard, the Course intends to focus on the knowledge of the major types of markets in which securities trade, the trading process and the major players in these arenas. A special attention is devoted to the many venues and procedures available for trading securities in International markets with a particular focus on the issues of financial regulation and competition.
Following a review of the investments industry – financial assets, financial intermediaries and financial markets, we will study the portfolio theory of, considering all the pros and cons of the applications. In a similar way we will introduce the other folllowing relevant models. The final objective is to know how the investments industry works and how to make investments decisions.. This will allow students to analyse financial markets, financial intermediaries and the most known theorethical models. Therefore, at the end of this course, students should be able to understand how investments decisions can be make and the effects of them on their savings. The use of some problem sets will also enable them to apply the concepts they have learned.
A. ELEMENTS OF INVESTMENTS
1. Investments: Background and Issues
2. Assets classes and financial Instruments
3. Securities markets
4. Mutual Funds and other investment companies
B. PORTFOLIO THEORY
1. Risk and return: past and prologue
2. Efficient diversification
3. Capital Asset Pricing and Arbitrage Pricing Theory
C. SECURITY ANALYSIS
1. Macroeconomic and Industry Analysis
2. Equity Valuation
3. Financial Statement Analysis
D. ACTIVE INVESTMENT MANAGEMENT
1. Globalization and International Investing
|Bodie, Kane, Marcus||Essentials of Investments||McGraw Hill||2017||978-1-259-25504-5|
This course will be assessed with a written examination which will consist of a multiple choice test both for attending and non-attending students. During the lessons the teacher will provide students with an example test to practice.
Moreover, candidates are given the opportunity to solve an homework assigned by the istructor during the lectures and\or prepare an essay on a topic assigned by the instructor on a specific issue related to the course.
The homework and the essay assessments will be part of the final evaluation.