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| FINA0003-1 | Investments
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| Duration : | 30h Th |
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| Number of credits : |
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| Lecturer : | Laurent Bodson |
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Language(s) of instruction :
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| English language |
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Course contents :
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| Organization and Content
A. Portfolio Theory
1. Risk and Risk Aversion
2. Capital Allocation Between the Risky Asset and the Risk-Free Asset
3. Optimal Risky Portfolios
B. Equilibrium in Capital Markets
4. The Capital Asset Pricing Model
5. Index Models
6. Multifactor Models of Risk and Return and the Arbitrage Pricing
Theory
7. Market Efficiency and Behavioral Finance
C. Security Analysis and Bond Valuation
8. Equity Valuation Models
9. Bond Prices and Yields
10. The Term Structure of Interest Rates
11. Managing Bond Portfolios
D. Applied Portfolio Management
12. Portfolio Performance Evaluation |
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Learning outcomes of the course :
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| This course introduces major issues currently of concern to all investors. It aims to provide the essential skills to conduct a sophisticated assessment of current issues and debates covered by both the popular media as well as more specialized finance journals.
Its primary goal is to present material of practical value. |
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Prerequisites and co-requisites/ Recommended optional programme components :
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| This course requires few prerequisites. However, some acquaintance with financial markets and instruments is assumed. Familiarity with the cash flows discounting and basic statistical techniques (descriptive statistics, hypothesis testing and linear regression) are also assumed. However, all these topics are revised. Some knowledge on corporate finance may help, but is not assumed. |
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Recommended or required readings :
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| BODIE, Z., A. KANE, and A.J. MARCUS, Investments, 8th edition, McGraw Hill, New York, 2008 |
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Assessment methods and criteria :
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| Written exam (3-hour exam, closed books) |
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Contacts :
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| Professor:
Laurent.Bodson@ulg.ac.be
Research Assistant: tlejeune@ulg.ac.be
N1 Tel.: 04/232.74.32. |
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