Financial investments: module i, portfolio theory; module ii, portfolio management

The course aims to give an in-depth overview of modern portfolio theory and risk management in the context of portfolios of fixed-income securities and stocks. At the end of the course, students are expected to know: equilibrium in capital markets from a theoretical perspective; portfolio optimization and risk-return trade-off from an empirical perspective; techniques for measuring and managing risk.
The first module of the course (PORTFOLIO THEORY) examines risk-return trade-off, portfolio optimization, index models and the implications of modern portfolio theory for the equilibrium structure of expected rates of return on risky assets; the capital asset pricing model, multifactor descriptions of risk, the arbitrage pricing theory, the efficient market hypothesis, and principles of behavioral finance.
The second module of the course (PORTFOLIO MANAGEMENT) examines fixed-income security analysis, stock analysis, derivatives and portfolio performance evaluation. In particular, it focuses on bond prices and yields and the management of bond portfolios; equity valuation models and financial statement analysis; option, futures and other derivatives.

The course aims to give an in-depth overview of modern portfolio theory and risk management in the context of portfolios of fixed-income securities and stocks. At the end of the course, students are expected to know: equilibrium in capital markets from a theoretical perspective; portfolio optimization and risk-return trade-off from an empirical perspective; techniques for measuring and managing risk.
The first module of the course (PORTFOLIO THEORY) examines risk-return trade-off, portfolio optimization, index models and the implications of modern portfolio theory for the equilibrium structure of expected rates of return on risky assets; the capital asset pricing model, multifactor descriptions of risk, the arbitrage pricing theory, the efficient market hypothesis, and principles of behavioral finance.
The second module of the course (PORTFOLIO MANAGEMENT) examines fixed-income security analysis, stock analysis, derivatives and portfolio performance evaluation. In particular, it focuses on bond prices and yields and the management of bond portfolios; equity valuation models and financial statement analysis; option, futures and other derivatives.