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Investments

 

Investments (IMEN286)

    The objective of this course

    The objective of this course is to introduce the recent theories and empirical results of managing financial problems, which may be faced by individual investors or financial/non-financial companies. The four main subjects are

    1. financial markets and institutions,
    2. portfolio theory(optimal asset allocation)
    3. asset pricing theory, and
    4. fixed income securities.

    The prerequisite for this course

    Basic principles in Financial Accounting
    Basic Statistics

    Textbook

    Investments, Z. Bodie, A. Kane and A.J. Marcus, 8th Ed., McGraw Hill.

    Schedule

    week

    main subjects

    details

    remark

    1

    Introduction

    Introduction

     

    Investment environment

     

    2

    Asset classes and financial instruments

     

    How securities are traded

     

    3

    Mutual funds and other investment companies

     

     

    National holiday(Chuseok, 9.21)

     

    4

    National holiday(Chuseok, 9.23)

     

    Portfolio theory and practice

    Learning about return and risk from the historical assets

     

    5

    Risk aversion and capital allocation to risky assets

     

    Optimal risky portfolios

     

    6

    Index models

     

    Other topics in portfolio management

     

    7

    Equilibrium capital markets

    CAPM

     

    APT and multifactor models of risk and return

     

    8

    Exam I

    35%

    9

    Equilibrium capital markets

    Efficient market hypothesis

     

    Behavioral finance and technical analysis

     

    10

    Special lecture on statistical inferences(Y. Rhee)

     

    Empirical evidence on security returns

     

    11

    Other topics in equilibrium

     

    Fixed-income securities

    Bond prices and yields

     

    12

    Term structure of interest rates

     

    Managing bond portfolios

     

    13

    Other topics in bond markets

     

    Security Analysis

    Macroeconomic and industry Analysis

     

    14

    Equity valuation models

     

    Financial statement analysis

     

    15

    Other topics in security analysis

     

    Summary

    16

    Exam II

    35%

     

    Grading Policy

    midterm exam/ final exam: each 35%

    attendance: 10%

    term project (research report) 10%

    * The term Project will be announced after mid-term exam (Oct. 28) and you should hand it in until December 10.

     

 

 
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