Finance

The course provides a basic conceptual framework for students to understand modern investments. Students will get familiar with the investment environment, understand the risk-return relationship, and build some quantitative investment strategies used by traditional portfolio managers. Instruments used to allocate capital and manage risk and to evaluate investments will be discussed during the course. Major topics include Investment environment; Securities, risk and return; Optimal Portfolio Selection; CAPM, Single/Multiple-Factor Models. Overall performance will be assessed based on two problem sets, one investment report and one (take-home) final exam.