Course goals
This introductory course aims to provide you with an understanding of the theoretical and, mainly, practical aspects of the financial markets and the pricing of financial instruments. We will take an applied perspective on various relevant topics, such as risk, diversification, interest rates, valuation theories, derivative securities (futures, forwards, and options), risk management, efficient markets, and portfolio management. Topics are selected in accordance to the requirements of Chartered Financial Analyst (CFA) and Professional Risk Manager (PRM) world-leading certification for finance and risk management, so to offer the adequate preparation for CFA and PRM exams and for relevant positions in the finance industry, such as company analyst, financial analyst, corporate finance advisor, or private banker.
Course results
At the end of this course, students should be able to:
- Describe in considerable depth the players, assets, terminology and conventions in financial markets.
- Explain in considerable detail various portfolio theories as well as the risk-return tradeoff, efficient market hypothesis and behavioral finance.
- Describe in considerable depth and use CAPM and multi-factor asset pricing models.
- Understand how investors analyze and value different types of equity and debt securities.
- Understand the pricing and valuation of forwards, futures, swaps and options.
