A78618 Financial investment & pricing

All students attending FIP classes should participate in the Experienctial Learning Lab. Students who do not attend the course cannot participate in the Lab.

By the end of the Lab students should be able to:

• Price fixed income securities using Excel
• Manage a long only portfolio of different assets including Cash, Equities and Fixed Income Securities.

We will be following three steps

• introduction
• team work to perform initial asset allocation
• ongoing simulation

Each team will start from the portfolio developed during the course and review its allocation in light of the portfolio optimization theory. Each bond in the portfolio will be priced by the team.

Each group will present their portfolio allocation to the rest of the class.

Over time the professor will ‘publish’ market news and events that might have an impact on the price of some of the securities and the teams should rethink their allocation accordingly.

Final presentation of the work done.

It is important that the students keep themselves up to speed with the subjects taught in class.

The work done in the Experiential Learning Lab could contribute up to 3 points to the final grade. Not finalize the work required or missing two classes would imply a penalty of 2 points to the grade that otherwise would have been achieved in the course.