Option Area(s):

Finance (Investment Track)

Course Description :

The objective of this course is to provide students with a sound foundation for the main concepts in investment management and portfolio theory. The major topics covered will include: trading mechanics, optimal portfolio selection and asset allocation, the theory of asset pricing models, and performance evaluation. The main emphasis of the course is on common stocks, especially portfolios. The course does not cover individual security selection and valuation. This course is fairly quantitative and relies on the economic theory and analytical tools developed throughout the course. The materials covered in the class have direct real world applications. We will spend a great deal of time discussing empirical evidence. As this is an advanced class, tenets of investment theory are analyzed from a very critical standpoint. Unfortunately, this will often times lead to answers such as "it depends", "no one knows," and "we need more data." Given the empirical nature of the course, it is crucial for the students to follow financial press regularly.

Prerequisites :

MGMT 61000 and 61100