A thorough overview of investments, providing students with knowledge of basic types
of securities (bond, stock, foreign exchanges and derivatives) and how the markets
for these securities operate. The principles of finance, including arbitrage, market
efficiency, asset pricing models and portfolio theory are covered. Specific topics
include risk-return and mean-variance efficient frontiers, diversification and pricing
of risk, security, pricing, etc. Students apply skills in modern investment pricing
techniques, including the pricing of fixed-income securities, equities, foreign exchange
and derivatives. Principles of portfolio selection and management and risk control
are also covered in relevant topics. Finally, the course looks at how banks and other
financial institutions make money by bringing issuers and investors together. Prerequisites:
ACCT 5325 and FINA 6305.
3 credits