Investments I & II (full-time)
core for MSc In Finance ( Full Time); elective for: MA in Economic Policy in Global Markets, MA in Economics
This course offers the financial theory and quantitative tools necessary for understanding how asset
prices are determined, and how financial assets are used for investment. The first half of the course
concentrates on the relation between risk and return, optimal portfolio selection, money
management, and practical aspects of asset allocation. The second half of the course focuses on
the pricing, trading, and use of specific assets (stocks, bonds, and derivatives). The course also
emphasizes the interaction between investment decisions and financial intermediaries and the
broader macroeconomic environment.
The course is quantitative and challenging. It takes a rigorous and critical view of the process of
investing. The aim is to provide the students with a lasting conceptual framework in which to view
and analyze investment decisions. The course will relate the material to current financial news, the
recent financial crisis and problems relevant to the practitioner. Students will also get first-hand
experience about investing and trading using a real-time brokerage account.
There will be 3 types of assignments.
All assignments are to be submitted online by 12:00AM on the due date, i.e. midnight the day
before they are due. For all three types of assignments, your assignment with the lowest
percentage grade will be dropped and all other assignments will have an equal weight in your final
grade. Beyond the one dropped assignment, no special excuses will be accepted for missing an
assignment. For group assignments, all members of the group are expected to fully understand
Finance (MA Economics students need written waiver), some background in basic statistics and regression analysis is strongly suggested.
• Exclusions: students who have taken Global Financial Markets may not take the course