The “Investment” course teaches the theory and applications of basic investment strategies in the financial world.
The primarily goal of the course is to give students the capacity to understand the theory and apply, in real world situations, the techniques that have been developed in the field, and to give the big picture so that students can understand how things fit together.
The main objectives of the course are to provide insight into:
- market classifications, types of assets and market participants, and how assets are traded
- the characteristics, analysis, and valuation of equity securities
- the breadth and diversity of fixed-income securities and details on the distinguishing features of all types of bonds
- the markets, venues, and conventions for bond trading
- the methods used to value fixed-income securities and to determine relative values between them
- various risks, which owners of fixed-income securities are exposed to and some approaches used to identify and quantify those risks
- three general classes of derivative instruments: forwards/futures, options, and swaps
- how indices are constructed, managed, and used in investments
- implications of different degrees of market efficiency for security analysis and portfolio management
- the process of examining the risk and return characteristics of individual assets, creating all possible portfolios, selecting the most efficient portfolios, and ultimately choosing the optimal portfolio tailored to the individual in question
- investment policy statement (IPS)
Overall, this course represents the minimal financial theory and necessary practical tools with which an undergraduate student majoring finance should be able to make meaningful investment decisions and be prepared for advance courses in investment management.
- Teacher: Olga Uzhegova