CAPITAL MARKETS

Description

Objectives: To introduce students in a rigorous but intuitive way to core topics in finance. The course intends to define fundamental principles for asset pricing and show their practical implications within financial markets. Thus, the course describes the role of institutions and instruments in financial markets, illustrates the asset management industry, presents modern portfolio theory and analyzes applied portfolio management. Assessment: Student assessment will be through both a mid-term and final exam. These will be closed-book, written exams, with numerical and theoretical questions. The mid-term (final) exam will carry a weight of 30% (70%) in the overall assessment. Teaching Methods: Lectures will cover course content. Supplementary teaching material will be used in class to integrate the content of the main textbook. Problem sets and essay type questions homework, posted on the course web-site, will be discussed in class. Prerequisites: Microeconomics and Statistics are pre-requisites. Econometrics and Mathematical Finance are also useful. Contents: 1. Introduction to Financial Instruments and Securities Markets. 2. Portfolio Theory. 3. Capital Markets Equilibria. 4. Empirical Analysis of Securities Returns. 5. Applied Portfolio Management Reference Texts: Investments (Global edition), Bodie, Kane and Marcus, McGraw-Hill, 10th ed (2014). Thesis assignment criteria: There are no specific requirements. Extended Program And Reference Reading Material: Week 1: Introduction to Financial Instruments and Securities Markets Extended Program And Reference Reading Material: Week 10: Applied Portfolio Management Extended Program And Reference Reading Material: Week 11: Applied Portfolio Management Extended Program And Reference Reading Material: Week 12: Applied Portfolio Management Extended Program And Reference Reading Material: Week 2: Introduction to Financial Instruments and Securities Markets Extended Program And Reference Reading Material: Week 3: Introduction to Financial Instruments and Securities Markets Extended Program And Reference Reading Material: Week 4: Portfolio Theory Extended Program And Reference Reading Material: Week 5: Portfolio Theory Extended Program And Reference Reading Material: Week 6: Portfolio Theory Extended Program And Reference Reading Material: Week 7: Empirical Analysis of Securities Returns Extended Program And Reference Reading Material: Week 8: Empirical Analysis of Securities Returns Extended Program And Reference Reading Material: Week 9: Empirical Analysis of Securities Returns Intended learning outcomes: Knowledge and understanding: The student - by participating in the lectures and practical activities of the course - will have developed the ability to understand the fundamental principles for asset pricing and their practical implications within financial markets Applying knowledge and understanding: The student - acquiring the correct tools and method - will be able to develop and apply analytical skills to operate within the asset management industry. Making judgements: The student, through the use of the methodologies acquired during the course, will have acquired problem analysis skills and the ability to identify the information necessary for their solution. Specifically, critical thinking, problem solving, self-management, teamwork, relationship and communication skills will be adequately developed, which enhance and make the disciplinary skills more usable. Communication skills: At the end of the course the student will be able to use the business and technical vocabulary of asset management industry with terminological accuracy. Through the various activities that will take place during the course – lecturers, problem sets and essay type questions homework - the student will be able to put these communication skills into practice in various contexts, by adapting the terms used to the interlocutor in the specific case, thus gaining advanced rhetorical skills necessary for his/her professional career. Learning skills: The technical-economic knowledge acquired during the course will allow the student to autonomously understand and interpret modern portfolio theory and adapt them to the specific reference context. The student will develop a solid knowledge of the fundamental aspects of the subject that will allow him to continue to deepen the topics addressed independently and to undertake the various post-graduate professional training courses.