The course aims to provide the student with a theoretical
and practical background in the field of securities instruments and related
markets. It provides a description of the characteristics of the main financial
instruments clarifying their risk return profile and the mechanics of the
markets where they are traded. It also offers a preview of portfolio theory and
asset pricing discussing how investors build their investment portfolios and
how the main types of securities are priced. The course is intended for
students who want to become a money manager, an investment professional or who
just want to be a wise investor. Within a rigorous analytical framework, the
course offers plenty of real world examples and favors the “hands on” approach.
The student should possess spreadsheet skills and a good
working knowledge of college algebra and statistics as well as be familiar with
the concepts of present value, future value and net present value.
Syllabus
1. The
Investment Environment
2. Asset
Class
3. How
securities are traded
4. Mutual
funds & Inv. Companies
5. Yield
structure
6. Bond
Prices and Yields
7. Equity
valuation models
8. How
do investors choose?
9. How
do investor choose ?
10.
Optimal risky portfolios
11.
Simple pricing of risky assets
12.
Options & Futures Markets
Examinations
The grades are determined by the performance on one long problem-set.
Students must certify in writing that they fully complied with the LIUC Code of
Honor (no cheating, no free riding, no shirking). Grades are revised upward or downward
according to the result of a short closed book test to be taken in class to control
for any opportunistic behavior.
Reading list
Required: Investments, 7th
(or 6th or 8th) Ed., Z. Bodie, A. Kane, A.J.
Marcus, Irwin/McGraw. Previous edition may also be ok if “rationally” used.
Recommended: The Wall
Street Journal, The Financial Times (Il Sole24ore, MF)