FIN3711 Investment


Prerequisite


FIN3701 Corporate Finance


Course Description


The course covers the features and trading methods of the securities markets, the analysis of risk and return in the context of formal pricing models such as the Capital Asset Pricing Model and the Arbitrage Pricing Theory. The course also includes basic techniques of securities valuation and management of securities in a portfolio context, analysis of bonds, duration, and convexity, valuation of stocks using models such as discounted cash flow models, P/E multiples, and alternative-pricing models, implication of efficient market theory and anomalies on fundamental and technical analysis, the concept of portfolio diversification and the construction of optimal portfolios such as mean-variance efficient portfolios and the introductions to options and futures markets.


Class Material


Course Syllabus

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Chapter 1 - General principle of investments

Chapter 2 - Risk and returns

Chapter 11 - General principle of valuation

Chapter 13 - Economics and Industry Analysis

Chapter 14 - Analysis of Financial Statement

Chapter 15 - Company Analysis and Stock Valuation

Chapter 16 - Technical Analysis

Chapter 6 - Securities Markets

Chapter 7 - Markets Indexes

Chapter 8 - Portfolio Theory

Chapter 9 - Capital Market Theory and background assumptions

Chapter 10 - Capital Market Efficiency

Chapter 12 - Valuation of Fixed-Income Securities

Chapter 17 - Introduction to Derivative Securities